How Mudrex Is Breaking Into India's Crypto ETF Market with U.S. Bitcoin Solutions

India’s crypto investment landscape is experiencing a significant shift. Mudrex, a California-based platform backed by Y-Combinator, is now bringing U.S. spot Bitcoin ETFs directly to Indian investors, marking a turning point in how the country’s financial markets approach digital assets. This crypto ETF expansion represents one of the first efforts by an Indian platform to make institutional-grade Bitcoin investment vehicles accessible to both institutional and retail clients in the region.

The move taps into a regulatory loophole that distinguishes between security investments and cryptocurrency holdings. By structuring Bitcoin ETFs as securities rather than direct crypto assets, the platform can leverage India’s existing Liberalised Remittance Scheme (LRS), which permits Indians to invest up to $250,000 annually in overseas financial instruments.

A New Gateway for Indian Institutions

What sets Mudrex apart is its focus on institutional investors. While individual retail clients could already access U.S. spot Bitcoin ETFs through American stock brokerage platforms, no Indian crypto platform had formally extended this service to institutions until now. In its initial phase, the platform will list four major spot Bitcoin ETFs from industry giants—BlackRock, Fidelity, Franklin Templeton, and Vanguard.

The company operates through a dual-subsidiary model: a U.S.-based partner handles the actual transactions, while its Indian subsidiary manages the platform operations and regulatory compliance. Approximately 350 institutional clients currently work with Mudrex, and the firm reports that roughly 20 have already begun the onboarding process for this new crypto ETF service. Average institutional ticket sizes are expected to hover around $110,000.

The minimum investment threshold is set at $5,000, with the maximum aligned to the LRS annual limit of $250,000, making the service accessible to serious institutional players while respecting regulatory boundaries.

Navigating India’s Complex Regulatory Landscape

India’s approach to crypto regulation remains fragmented and contentious. The Reserve Bank of India (RBI), the country’s central bank, has maintained a staunch resistance to cryptocurrency, arguing that the nation’s economic conditions cannot support the risks associated with digital assets. This stance extends to skepticism about replicating the U.S. model of approving spot Bitcoin ETFs.

Meanwhile, the Finance Ministry and its Intelligence Unit have taken a different approach, registering over two dozen Indian crypto service providers and implementing significant taxation on the sector. Both entities ostensibly share the goal of protecting India’s economy and investors, yet their regulatory frameworks reveal philosophical differences in how they view crypto’s role in the financial system.

Mudrex’s strategy exploits this regulatory ambiguity by classifying Bitcoin ETFs as securities rather than cryptocurrency, thereby sidestepping direct RBI oversight while operating within the Finance Ministry’s registered framework. This legal positioning has proven crucial to the platform’s ability to launch the service without triggering banking complications.

The LRS Framework: Making Cross-Border Crypto ETF Investment Accessible

The Liberalised Remittance Scheme is the linchpin of this arrangement. Originally designed to simplify overseas investments for Indian residents and institutions, the LRS allows annual offshore investments up to $250,000 without requiring detailed justification to Indian authorities. Bitcoin ETFs, by virtue of being classified as securities, fall comfortably within this framework.

For Mudrex, the critical advantage lies in its established banking relationships with U.S. financial institutions. These connections enable seamless cross-border transactions that would otherwise face friction from India’s traditionally crypto-hostile banking sector. The platform essentially acts as a bridge, translating regulatory permission into operational feasibility for institutions seeking Bitcoin exposure through a recognized financial instrument.

Mudrex CEO Edul Patel emphasized that this accessibility is particularly valuable for institutional clients who were previously limited in their options. The company’s infrastructure handles the complexity of LRS compliance, currency conversion, and international fund settlement—tasks that would prove prohibitively complicated for individual investors managing these transactions independently.

What This Means for India’s Crypto Ecosystem

The emergence of institutional-grade crypto ETF access in India signals a broader shift in how emerging markets are approaching digital asset investment. Rather than banning crypto outright, platforms are finding creative regulatory pathways that satisfy both investor demand and governmental oversight concerns.

Mudrex’s international footprint—including licenses in Lithuania and Italy—positions it as a truly global player that happens to serve the Indian market. This structure provides additional regulatory optionality and demonstrates how forward-thinking platforms navigate conflicting national policies around crypto ETF products.

As more of India’s 350-strong institutional client base enters this space, expect the volume and sophistication of India’s crypto ETF market to expand considerably. The $250,000 LRS limit per institution annually may initially seem constraining, but it represents a formal acknowledgment that Bitcoin investment, properly structured, can coexist within India’s regulatory framework. For institutions seeking Bitcoin diversification without direct crypto market exposure, this crypto ETF solution offers a compelling alternative that satisfies both investment objectives and compliance requirements.