On September 15, 2025, global investing platform Vested Finance announced that it would stop offering crypto exchange-traded funds (ETFs) to Indian residents. The platform said the move followed new regulatory restrictions and listed several funds that will no longer be available. These include the iShares Bitcoin Trust (IBIT), the iShares Ethereum Trust (ETHA), the Fidelity Wise Origin Bitcoin Fund (FBTC), the ARK 21Shares Bitcoin ETF (ARKB), and the Valkyrie Bitcoin Fund (BRRR), among others.
However, Vested has confirmed that existing investors may still hold or sell these instruments, ensuring that current positions remain valid even as new access closes.
The announcement stems directly from the International Financial Services Centres Authority (IFSCA)’s revised rules for Global Access issued on August 12, 2025. In its Revised Global Access Circular, the regulator drew a clear line by excluding crypto-assets and any product with cryptocurrency as its underlying from the definition of permissible “financial products” in the IFSC.
Crucially, Clause 20 prohibits Global Access Providers from offering such products to Indian residents. Moreover, the circular requires compliance by October 31, 2025.
What are cryptocurrency ETFs?
Cryptocurrency ETFs give investors a way to gain exposure to digital assets such as Bitcoin and Ethereum without directly buying or storing the tokens themselves. Instead of holding cryptocurrency in a digital wallet, investors purchase shares in a fund that tracks the price of the underlying asset. For example, a Bitcoin ETF mirrors the performance of Bitcoin, while an Ethereum ETF follows the price of Ether. These funds trade on traditional stock exchanges, making them easier to access through regular brokerage accounts.
Importantly, crypto ETFs lower entry barriers. They allow retail investors to participate in the market without navigating the complexities of private keys, exchanges, or custody arrangements. At the same time, they are subject to traditional financial regulation in jurisdictions where they are approved, which in theory provides more oversight than direct crypto trading. However, the products remain highly volatile, as their value rises and falls with the underlying cryptocurrency.
In practice, regulators have taken cautious approaches. The United States, for instance, approved several spot Bitcoin ETFs only in January 2024, opening the door for mainstream investors.
Cryptocurrency In India
India first kicked off serious regulatory scrutiny of cryptocurrencies in 2018, when the Reserve Bank of India (RBI) barred banks from servicing crypto exchanges, citing risks of money laundering and financial instability. However, the Supreme Court overturned that circular in 2020, ruling that the RBI ban violated constitutional rights to trade.
Thereafter, the government mulled a full ban on private cryptocurrencies. A draft bill in 2021 proposed prohibiting mining,…
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