Bitcoin News Today: India’s HNIs Shift 30% More Funds to Crypto as Bitcoin Surges 90%

India’s high-net-worth individuals are rapidly shifting their investment preferences from traditional assets like stocks and gold to cryptocurrencies. This trend is evident as leading exchanges in India report a significant surge in interest from family offices amidst the ongoing global bull run in the crypto market. The shift is particularly notable after the return of Trump to the White House, which has boosted global confidence in cryptocurrencies.

Wealthy Indian investors are increasingly allocating their funds to digital assets such as Bitcoin and Ethereum. The appeal of these assets has grown significantly, especially with Bitcoin’s price surging above $120,000 and delivering 90% returns in a year. This performance makes cryptocurrencies more attractive compared to traditional investments like gold, stocks, or bonds.

Platforms like Mudrex have seen a 30% rise in trading volumes from high-net-worth individuals (HNIs) in just one week, reaching the $10 million mark. Similarly, CoinDCX reported a 25–30% increase in the average trade size by HNIs in July, up from ₹5 lakh in the previous month. From January to June, over 3,500 HNIs, family offices, and institutional players contributed nearly half of CoinDCX’s total trading activity, with their average monthly spot trading volume exceeding ₹50 lakh.

The mindset of wealthy investors is shifting towards blue-chip tokens like Bitcoin and Ethereum, with tokens like Solana and XRP also gaining traction. Ashish Singhal, co-founder of CoinSwitch, notes that Indian HNIs are no longer just exploring crypto; they are actively investing in it. The focus has moved from questioning the viability of crypto to determining how much and where to invest.

Bitcoin ETFs have pulled in $70 billion in inflows and doubled in value to $150 billion in just 18 months, a feat that gold has not achieved in decades. This highlights the growing interest and confidence in cryptocurrencies among investors.

While HNI trades are growing, retail investors are driving the real momentum in the market. Daily trading volumes have jumped sharply across major platforms. CoinSwitch saw a 3x jump in daily trading, while CoinDCX’s daily volume rose 40% in July to $12.82 million. Mudrex saw spot trading jump by 102% and futures trading rise 200% within just one week, with over half of this activity coming from meme coins like Doge, PEPE, and Shiba Inu, and the rest from Bitcoin, Ethereum, Solana, and Ripple. ZebPay saw 60% of trades towards the buy side, indicating a strong bullish sentiment among retail investors.

However, India’s high taxes and uncertain regulations remain major obstacles that are pushing retail investors away. Experts suggest that simpler rules and better tax policies could drive even more interest in cryptocurrencies. Bitcoin’s explosive price rally sparked significant interest in India, with around $150–200 million invested in just one week. Major activity took place between July 10–15, when Bitcoin crossed $116,000. Experts predict that it could reach $140,000–$185,000 by the end of the year.

This trend is part of a broader global shift towards digital assets, as investors recognize the potential for significant gains and the growing acceptance of cryptocurrencies in the financial ecosystem. The adoption of the Crypto-Asset Reporting Framework (CARF) by India aligns its tax systems with international standards, targeting offshore crypto tax evasion. This move is expected to provide a more transparent and regulated environment for cryptocurrency investments, further encouraging wealthy investors to allocate more of their portfolios to digital assets.

The appeal of cryptocurrencies lies in their potential for high returns and the decentralized nature of the technology, which offers investors a level of control and security that traditional financial instruments may not provide. Additionally, the increasing acceptance of cryptocurrencies by institutional investors and the development of regulatory frameworks in various countries are contributing to the growing confidence in digital assets. This trend is likely to continue as more investors recognize the benefits of diversifying their portfolios with cryptocurrencies.