Crypto was initially seen as belonging to tech-savvy millennials and Generation Z as a way to create wealth. Now, high-net-worth people are increasingly examining cryptos as a way to broaden their investments. It is partly due to the fact that no other investment vehicle can match the high returns offered by blue-chip digital currencies like bitcoin and ether. Bitcoin, the world’s most popular digital coin, has increased by over 50% since the beginning of the year. The year-over-year increase is over 400 percent. When compared to brokerage firms, the increases in such assets have led to a significantly larger customer base at the Indian cryptocurrency exchanges.
In comparison to CoinSwitch Kuber’s 11 million active users and WazirX’s 8.3 million, Zerodha now has approximately seven million active users.
While retail investors have led the increase in customer base at Indian crypto exchanges, there has been an increase in interest from HNI investors in investing in bitcoins over the last 12 months. The HNI, or wealthy class, was a little late to the crypto party, but they quickly realized it is a very significant asset class. You’re disregarding the Googles and Apples of ten years from now if you don’t have crypto. Some traders are considering cryptocurrency as a gold substitute.
Wealthy investors tend to invest via funds rather than personally holding cryptos because they are concerned about regulatory risks. It is much more simple for HNI investors because they do not need to transfer their fiat money to cryptocurrency or register wallet accounts with cryptocurrency exchanges. Because there are no exchange-traded funds (ETFs) listed in the United States, clients are investing in ETFs listed in other nations. These developments in India only reflect shifting changes in the global context.