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Time of India
3 days ago
- Business
- Time of India
Crypto is the new gold: Why India's rich are buying Bitcoin
As Indian equities stall, gold steadies, and fixed-income returns remain uninspiring, a new trend is emerging among the country's wealthiest investors: a growing appetite for cryptocurrencies. Tired of too many ads? go ad free now High-net-worth individuals (HNIs), family offices, and institutional players are quietly reshaping their portfolios, steering capital toward digital assets like and Ethereum, a report in the Economic Times said. The shift has picked up serious pace over the past six months, particularly after the return of as the US president. 'The mood among HNIs has changed dramatically,' Atul Ahluwalia, vice president of HNI & Institutional Investments at CoinSwitch, told 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 strategy Crypto exchanges report a sharp uptick in trading volumes from India's elite. CoinDCX, for instance, says nearly half its volume now comes from just 3,500 HNIs, family offices, and institutional clients. These aren't day traders or retail speculators—they're sophisticated investors with a long view. The move isn't just about chasing returns. Many investors are also seeking exposure to blockchain-based technologies and decentralized finance (DeFi), seeing them as foundational to the future of global finance. Bitcoin's rally sparks fresh momentum Bitcoin recently broke past the $120,000 mark—a record high—delivering a staggering 90% year-on-year return. Tired of too many ads? go ad free now Ethereum and other altcoins have followed suit. This explosive performance is drawing attention at a time when traditional investment avenues offer limited excitement. Equity markets, while stable, have become expensive and volatile. Bonds are still struggling to offer attractive real returns. Gold has delivered modest gains, but its upside appears capped. In this environment, crypto—despite its volatility—is seen as a risk worth 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 several Indian family offices. Global winds are favorable Indian investors are also being influenced by global signals. Political developments in the US—including strong pro-crypto positions from key Republican candidates—have reignited confidence in digital assets. Bitcoin ETFs in the US have further legitimized the space and made institutional access easier. This global momentum has made its way to India, particularly among those with cross-border exposure and international holdings. Wealth managers are fielding more questions than ever about the best entry points, diversification across crypto assets, and risk management. Regulatory headwinds remain Yet, the road isn't without obstacles. India's tax policy on digital assets remains a major sticking point. A 30% capital gains tax and a 1% Tax Deducted at Source (TDS) on each crypto transaction have driven most retail investors offshore or underground. The crypto industry is actively lobbying for tax reforms, arguing that these harsh rules stifle innovation and push capital out of India. If the government softens its stance, domestic participation could surge even further. '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 executive at a leading Indian exchange. (With inputs from agencies)
Economic Times
4 days ago
- Business
- Economic Times
India's wealthy investors turn to crypto assets as traditional markets stagnate
Tired of too many ads? Remove Ads Crypto TrackerPowered By TOP COINS TOP COIN SETS Ethereum 2,68,881 ( 3.95 %) Buy Solana 14,075.09 ( 1.01 %) Buy BNB 59,216 ( -0.03 %) Buy XRP 249.83 ( -1.2 %) Buy Bitcoin 1,01,04,647 ( -1.78 %) Buy Mumbai: India's wealthy are increasingly taking a shine to crypto assets, a global favourite these days, as they see limited scope for appreciation in traditional favourites like stocks and gold at this point. Domestic affluent investors, who have been adding these virtual currencies to their portfolios since the election of the US president Donald Trump in November last year, have ramped up their holdings of late, a stark contrast to their position last year when they were reluctant to test out these new-age assets."Over the last 6 months, we're seeing clear momentum from HNIs and family offices who are now allocating a portion of their portfolios to digital assets," said Atul Ahluwalia, vice-president, HNI & institutional investments at CoinSwitch . "The conversation has moved from 'why crypto' to 'how much and where'." Bitcoin, the most popular cryptocurrency in the world, made a lifetime high after it crossed $120,000 earlier this week, jumping over 90% in the past Trump's strong support for cryptocurrencies was the trigger for the renewed bull wave in this asset class, investors' search for alternatives to expensive stocks, record-breaking gold and volatile bonds has fuelled their demand."The limited availability of attractive investment opportunities and heightened volatility in India's secondary markets have further driven HNIs toward digital assets," said Pranjal Agarwal, India market head at Mudrex.A high-net-worth investor in cryptos is classified as having an average holding of ₹50 lakh-₹1 crore or above in these assets. There is no centralised data on how much money worth of cryptocurrencies are traded in India as they are unregulated. For CoinDCX , a domestic crypto exchange, almost 50% of its total trading volumes come from its 3,500-odd large investor base comprising HNIs, family offices, and institutions. The average contribution of these investors in our monthly trading volume on our spot markets is ₹50 lakh or more," said CoinDCX's co-founder Sumit Gupta. "Notably, our institutional and family office clientele has grown by 50%, underlining the rising conviction among serious investors." CoinDCX had a monthly spot trading volume of $275 million in the month of emerged as an alternative to traditional money since 2009. Their rise reflects growing demand for digital assets amid distrust in conventional financial systems.'Crypto is increasingly viewed as a non-correlated asset, particularly valuable amid ongoing global macroeconomic volatility,' said Harish Vatnani, head of trade, ZebPay. The most popular cryptocurrencies globally today are Bitcoin and Ethereum, which remain key choices for investors seeking exposure to crypto. Even in India, HNIs have stuck to the most liquid. Mudrex's Agarwal said Bitcoin, Ethereum, and Solana consist of about 70% of the platform's HNI has outperformed both US and Indian benchmarks by a wide margin. While bitcoin prices are on course to double, the Nifty is up 2.q5%, the S&P 500 has gained 11.3% and the Nasdaq Composite has advanced 12.5% in the past topped global crypto adoption for the second year in 2024, according to Chainalysis, with 119 million investors, which is nearly one-fifth of all crypto holders US ranked second with 53 million investors, followed by Indonesia with 39 million, CoinLedger data showed. Himanshu Maradiya, chairman, CIFDAQ, a digital currency trading platform, said the growth in the participation of affluent investors in cryptos is a global trend.'Retail investors dominate crypto exchanges in user count, making up 90-95% of users, but contribute only 30-50% of trading volume,' said Maradiya. 'HNIs and institutions, though fewer in number (4-10%), drive 50-70% of turnover due to larger trades and frequent use of derivatives.'
Time of India
4 days ago
- Business
- Time of India
India's wealthy investors turn to crypto assets as traditional markets stagnate
Mumbai: India's wealthy are increasingly taking a shine to crypto assets, a global favourite these days, as they see limited scope for appreciation in traditional favourites like stocks and gold at this point. Domestic affluent investors, who have been adding these virtual currencies to their portfolios since the election of the US president Donald Trump in November last year, have ramped up their holdings of late, a stark contrast to their position last year when they were reluctant to test out these new-age assets. "Over the last 6 months, we're seeing clear momentum from HNIs and family offices who are now allocating a portion of their portfolios to digital assets," said Atul Ahluwalia, vice-president, HNI & institutional investments at CoinSwitch . "The conversation has moved from 'why crypto' to 'how much and where'." Bitcoin, the most popular cryptocurrency in the world, made a lifetime high after it crossed $120,000 earlier this week, jumping over 90% in the past year. Agencies While Trump's strong support for cryptocurrencies was the trigger for the renewed bull wave in this asset class, investors' search for alternatives to expensive stocks, record-breaking gold and volatile bonds has fuelled their demand. Crypto Tracker TOP COIN SETS NFT & Metaverse Tracker 34.30% Buy Web3 Tracker 23.80% Buy Smart Contract Tracker 16.05% Buy DeFi Tracker 15.30% Buy BTC 50 :: ETH 50 13.89% Buy TOP COINS (₹) Ethereum 269,704 ( 4.12% ) Buy Solana 14,102 ( 1.08% ) Buy BNB 59,324 ( 0.13% ) Buy XRP 251 ( -1.27% ) Buy Bitcoin 10,122,048 ( -1.76% ) Buy "The limited availability of attractive investment opportunities and heightened volatility in India's secondary markets have further driven HNIs toward digital assets," said Pranjal Agarwal, India market head at Mudrex. Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » A high-net-worth investor in cryptos is classified as having an average holding of ₹50 lakh-₹1 crore or above in these assets. There is no centralised data on how much money worth of cryptocurrencies are traded in India as they are unregulated. For CoinDCX, a domestic crypto exchange, almost 50% of its total trading volumes come from its 3,500-odd large investor base comprising HNIs, family offices, and institutions. The average contribution of these investors in our monthly trading volume on our spot markets is ₹50 lakh or more," said CoinDCX's co-founder Sumit Gupta. "Notably, our institutional and family office clientele has grown by 50%, underlining the rising conviction among serious investors." CoinDCX had a monthly spot trading volume of $275 million in the month of June. Cryptocurrencies emerged as an alternative to traditional money since 2009. Their rise reflects growing demand for digital assets amid distrust in conventional financial systems. 'Crypto is increasingly viewed as a non-correlated asset, particularly valuable amid ongoing global macroeconomic volatility,' said Harish Vatnani, head of trade, ZebPay. The most popular cryptocurrencies globally today are Bitcoin and Ethereum, which remain key choices for investors seeking exposure to crypto. Even in India, HNIs have stuck to the most liquid. Mudrex's Agarwal said Bitcoin, Ethereum, and Solana consist of about 70% of the platform's HNI portfolios. Bitcoin has outperformed both US and Indian benchmarks by a wide margin. While bitcoin prices are on course to double, the Nifty is up 2.q5%, the S&P 500 has gained 11.3% and the Nasdaq Composite has advanced 12.5% in the past year. India topped global crypto adoption for the second year in 2024, according to Chainalysis, with 119 million investors, which is nearly one-fifth of all crypto holders worldwide. The US ranked second with 53 million investors, followed by Indonesia with 39 million, CoinLedger data showed. Himanshu Maradiya, chairman, CIFDAQ, a digital currency trading platform, said the growth in the participation of affluent investors in cryptos is a global trend. 'Retail investors dominate crypto exchanges in user count, making up 90-95% of users, but contribute only 30-50% of trading volume,' said Maradiya. 'HNIs and institutions, though fewer in number (4-10%), drive 50-70% of turnover due to larger trades and frequent use of derivatives.'
