Wealthy Indians Turn to Bitcoin as a Strategic Investment

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Wealthy Indian investors are increasingly shifting their portfolios toward Bitcoin, viewing it as a modern alternative to gold amid limited returns in traditional financial markets. This trend is gaining traction as high-net-worth individuals (HNWIs) and family offices look for more dynamic asset classes to protect and grow their wealth.

According to recent market data, this rise in crypto interest is fueled by stagnant performance in equities, gold, and fixed-income securities. As a result, digital assets like Bitcoin are gaining appeal as a potential hedge and store of value. Several leading crypto platforms, including CoinSwitch and Mudrex, have confirmed that a sizable share of their trading volume now originates from affluent users.

Industry experts say that this shift shows a growing sentiment among wealthy Indians that digital currencies can complement traditional investment strategies. Edul Patel, co-founder of Mudrex, noted that conversations have moved beyond the basics, with clients now focusing on allocation levels and asset selection.

Bitcoin’s recent rally, driven by global institutional interest and renewed investor confidence, has reinforced this outlook. Indian exchanges such as CoinDCX, CoinSwitch, Mudrex, and ZebPay have reported a combined inflow of $150 to $200 million over the past week alone, indicating a significant rise in domestic participation.

The trend is not limited to metro areas. Several non-metro cities are showing strong engagement with digital currencies. According to CoinSwitch, seven out of the top ten cities in crypto growth last year were outside India’s major urban centers, highlighting the expanding reach of digital finance.

A report by Grant Thornton Bharat projects India’s crypto market could grow from $2.5 billion in 2024 to over $15 billion by 2035, with an estimated annual growth rate of 18.5 percent. This growth trajectory underlines the long-term potential seen by both investors and market analysts.

Despite the momentum, regulatory concerns remain. The current 30 percent tax on crypto gains and the absence of formal classification under financial law have raised questions. Additionally, the Reserve Bank of India has expressed caution regarding the risks to financial stability.

Still, the broader trend suggests digital assets are becoming a key part of wealth planning strategies.