Securities and Exchange Board of India has warned mutual funds to wait for the new fund offers based on crypto assets. The Chairman of SEBI, Ajay Tyagi has suggested to mutual funds not to make investments in crypto assets and wait for a law for the regulation of the industry.
The Cryptocurrency and Regulation of Official Digital Currency Bill (2021) of India still need to be approved by the cabinet. SEBI issued a warning regarding investing in mutual funds after the asset management company Invesco Mutual Funds delayed the launch of its blockchain fund in India due to legislative uncertainty, even after having approval from SEBI.
Invesco is not the only mutual fund in India, who are willing to dip in the crypto space. Navi Mutual Fund also filed for a Blockchain Index Fund of Funds, to track the IndxxBlockchain Index.
IndxxBlockchain Index does not track crypto assets directly. It tracks mainstream companies like Nvidia, Advanced Micro Devices and others that are engaged in any type of crypto activity. The list also includes Indian IT giants such as Infosys, Wipro and TCS.