Why high-net-worth Indians are increasing their investments in cryptocurrencies
What's the story
Indian high-net-worth individuals (HNIs) are increasingly investing in cryptocurrencies, with leading exchanges such as CoinDCX, CoinSwitch, Mudrex, and ZebPay witnessing a surge in activity. The trend comes as global markets rally during the ongoing 'Crypto Week' in the United States. Despite regulatory uncertainties and high taxation in India, platforms such as Mudrex have seen a 30% increase in HNI trading volume to $10 million from the previous week.
Market trends
CoinDCX reports healthy growth
CoinDCX has also reported a nearly 25-30% increase in average per trade sizes of HNIs from June to July. Between January and June, almost half of CoinDCX's total trading volumes were driven by more than 3,500 HNIs, family offices, and institutions with an average investment exceeding ₹50 lakh in monthly spot market trading volume.
Investment shift
HNIs mostly investing in Bitcoin, Ethereum
CoinSwitch's co-founder Ashish Singhal noted that HNIs are mostly investing in blue-chip tokens such as Bitcoin (BTC) and Ethereum (ETH). He said these assets "have stood the test of time and offer a strong mix of credibility and liquidity." Apart from BTC and ETH, Solana and Ripple (XRP) are also witnessing increased interest from HNIs across exchanges.
Changing perceptions
Change in mindset of HNIs and family offices
Singhal observed a change in the mindset of HNIs and family offices, saying, "What's interesting is how the conversation has shifted—from 'Why crypto?' to 'How much exposure makes sense, and where should we allocate it?'" Edul Patel, the co-founder and CEO of Mudrex, noted that Bitcoin ETFs are at an all-time high with capital inflows of $70 billion.