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.High-net-worth individuals (HNIs), family offices, and institutional players are quietly reshaping their portfolios, steering capital toward digital assets like Bitcoin 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 Donald Trump 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 strategyCrypto 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 momentumBitcoin recently broke past the $120,000 mark—a record high—delivering a staggering 90% year-on-year return. 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 favorableIndian 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 remainYet, 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)
