The New Investment Trend Among India's Elite

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.

From Skepticism to Strategic Investment

“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.”

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.

Bitcoin’s Rally and the Future of Investments

Bitcoin 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.

“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 Influences and Regulatory Challenges

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.

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.