A blockchain index fund by Invesco has been approved by the Securities and Exchange Board of India (SEBI), as first reported by LiveMint.

The scheme named the Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF) invests in Invesco Elwood Global Blockchain UCITS ETF (UCITS) which in turn invests in companies “that participate or have the potential to participate in the blockchain ecosystem,” the fund’s investment scheme document said.

According to the investment scheme document, the scheme is highly risky and is ideal for investors looking for long-term capital appreciation. UCITS is a fund launched in 2019 and is based in Ireland.

UCITS has investments in Bitfarms Ltd (5.51% of net assets), Hive Blockchain Technologies Ltd (5.13% of net assets), and Coinbase Global Inc (4.67% of net assets) among others. The fund announcement offers Indian investors exposure to the blockchain ecosystem in a legitimate way.

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The scheme was originally scheduled to open for subscription on 24 November. However, the asset management company on Wednesday announced the deferral of the launch citing regulatory developments.

“From the developments of the last few days, Indian lawmakers have been meeting participants in the country’s digital assets industry, which will likely culminate in a new legislative framework being formulated,” a press release by Invesco read.

“There was a likelihood that the fund would have been perceived as a crypto fund even though it is not one, given the unusual craze around crypto currency at the moment. It’s a precautionary move by the fund house,” Dhirendra Kumar, Founder, Value Research was quoted by Economic Times.

On Thursday, PM Modi said cryptocurrency has the potential to spoil our youth and called for democratic countries to act together.