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Indian investors will now be able to invest in Grayscale products

Updated: Aug 23, 2024
Published: Jun 9, 2022
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Investors in the world's second-most populated country, India, will now be able to invest in products offered by Grayscale Investments, a subsidiary of Digital Currency Group (DCG), for the first time. 

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Grayscale products now available in India

According to the report from a local media outlet, Indian investors will now be able to invest in Bitcoin, Ethereum, and other cryptocurrencies indirectly through the products offered by Grayscale. Hence, Indian investors will not have to expose themselves to the crypto industry with direct purchases. 

Global investment platform Vested Finance has taken the initiative to provide Indian investors with Grayscale products, and as per the firm, investing in cryptocurrencies through this route will be counted as a capital gains tax, and the profits made will not be subject to the 30% tax that was imposed on these blockchain based tokens by the Indian government in the Union Budget for 2022. Investors won't be subjected to the 1% TDS introduced in the bill.

"The tax on cryptocurrencies has made investing in cryptocurrencies less appealing to Indians. Through Grayscale, investors can gain exposure to crypto by investing in a stock while not being subject to high taxation," said Viram Shah, co-founder, and CEO of Vested Finance.
Additionally, short-term gains will be taxed according to an individual's tax plan, while long-term gains are subject to 20% tax under the tax laws of India. 

GBTC to BTC ETF

Grayscale is well-known for its GBTC product which the firm wants to convert into a Bitcoin-spot ETF. The application for the same was submitted to the SEC in October last year. Since then, the financial authority has been delaying the decision for the same. The firm hired Donald B. Verrilli as its additional legal counsel intensifying its efforts to get approval from the SEC. Verrilli has a strong background in the legal industry.

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