Bitcoin ETF approval: Can Indians also invest?

The approval of the first US-listed exchange-traded fund (ETF) to track Bitcoin by the US Securities and Exchange Commission (SEC) has sent waves of excitement across the global cryptocurrency community. This development is not only an important milestone for crypto enthusiasts around the world, but also raises an important question for Indian investors – can they also participate in the Bitcoin ETF?

Viram Shah, CEO of Vested Finance, said, "For Indian investors, the Bitcoin ETF will provide an opportunity to include crypto in their portfolio via the Liberalized Remittance Scheme (LRS) route."

Indian individuals can send money outside the country through the LRS route. Under the scheme, an individual can send a maximum of $250,000 to an overseas jurisdiction in a year.


Like any investment, Bitcoin ETFs come with their own set of pros and cons. However, one notable advantage is that investors can gain exposure to Bitcoin through regulated entities, alleviating concerns about cryptocurrency storage.

"An Indian investor taking exposure on Bitcoin ETF will get easy exposure through regulated entities without worrying about the storage of the cryptocurrency," Viram Shah added.

In taxation concerns, Viram Shah further stated, "Besides, 1% TDS on transactions will not be applicable since there is no actual crypto being purchased and capital gains tax will also be lower. On the other hand, the 20% TCS introduced in 2023 will be applicable on deposits above INR 7 Lakhs via LRS. Although, unlike TDS, it can be used to offset other tax liabilities but may lead to liquidity getting stuck."

"Management fees for the ETF is an additional cost. BlackRock plans to charge 0.3%, while ARK has announced a fee of 0.25%, which seems reasonable given the average ETF management fee in the US is about 0.5%," Viram pointed out.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)