Crypto is the new gold: Why India’s rich are buying Bitcoin

Crypto exchanges report a pointy uptick in buying and selling volumes from India’s elite. (AI picture)

As Indian equities stall, gold steadies, and fixed-income returns stay uninspiring, a new pattern is rising amongst the nation’s wealthiest traders: a rising urge for food for cryptocurrencies.High-net-worth people (HNIs), household workplaces, and institutional gamers are quietly reshaping their portfolios, steering capital towards digital belongings like Bitcoin and Ethereum, a report in the Economic Times mentioned. The shift has picked up severe tempo over the previous six months, notably after the return of Donald Trump as the US president.“The mood among HNIs has changed dramatically,” Atul Ahluwalia, vp of HNI & Institutional Investments at CoinSwitch, informed the Economic Times. “We’ve moved past the phase of questioning crypto’s legitimacy. Now the focus is on allocation strategy—how much to invest, which tokens to hold, and what kind of custody makes sense.”From skepticism to techniqueCrypto exchanges report a pointy uptick in buying and selling volumes from India’s elite. CoinDCX, as an example, says practically half its quantity now comes from simply 3,500 HNIs, household workplaces, and institutional purchasers. These aren’t day merchants or retail speculators—they’re refined traders with an extended view.The transfer isn’t nearly chasing returns. Many traders are additionally looking for publicity to blockchain-based applied sciences and decentralized finance (DeFi), seeing them as foundational to the future of worldwide finance.Bitcoin’s rally sparks recent momentumBitcoin lately broke previous the $120,000 mark—a file excessive—delivering a staggering 90% year-on-year return. Ethereum and different altcoins have adopted go well with. This explosive efficiency is drawing consideration at a time when conventional funding avenues supply restricted pleasure.Equity markets, whereas steady, have turn out to be costly and unstable. Bonds are nonetheless struggling to supply enticing actual returns. Gold has delivered modest positive aspects, however its upside seems capped. In this atmosphere, crypto—regardless of its volatility—is seen as a danger value taking.“Crypto is no longer a fringe bet for the ultra-wealthy. It’s becoming a core part of diversified portfolios, especially for those looking at 5- to 10-year horizons,” notes a wealth advisor to a number of Indian household workplaces.Global winds are favorableIndian traders are additionally being influenced by world alerts. Political developments in the US—together with robust pro-crypto positions from key Republican candidates—have reignited confidence in digital belongings. Bitcoin ETFs in the US have additional legitimized the area and made institutional entry simpler.This world momentum has made its approach to India, notably amongst these with cross-border publicity and worldwide holdings. Wealth managers are fielding extra questions than ever about the greatest entry factors, diversification throughout crypto belongings, and danger administration.Regulatory headwinds stayYet, the highway isn’t with out obstacles. India’s tax coverage on digital belongings stays a serious sticking level. A 30% capital positive aspects tax and a 1% Tax Deducted at Source (TDS) on every crypto transaction have pushed most retail traders offshore or underground.The crypto trade is actively lobbying for tax reforms, arguing that these harsh guidelines stifle innovation and push capital out of India. If the authorities softens its stance, home participation may surge even additional.“For now, the wealthy can absorb the tax hit. But for broader adoption, regulatory clarity and a friendlier tax regime are critical,” says a senior govt at a number one Indian change.(With inputs from businesses)