For centuries, gold has been the financial backbone of Indian families, seen in dowries, heirlooms, and investment portfolios. But India’s affluent are now gradually embracing a new form of digital gold: Bitcoin.
This emerging trend, once seen as speculative, is being driven by High Net-Worth Individuals (HNIs), family offices, and particularly, tech-savvy heirs. According to Edul Patel, CEO of Mudrex, crypto investments now make up about 30% of the platform’s trading volumes, largely from wealthy Indian investors. These investors typically allocate 2–5% of their portfolios to digital assets like Bitcoin, Ethereum, and Solana, which together represent nearly 70% of these crypto allocations.
From Volatile to Viable: Why Bitcoin is Becoming Mainstream
The shift is being powered by global developments. Sumit Gupta, Co-founder of CoinDCX, notes that institutional moves, like BlackRock’s launch of Bitcoin ETFs, have legitimised Bitcoin in the eyes of conservative investors. “HNIs are no longer asking why crypto but how much crypto should be in their diversified portfolios,” he said.
Gupta draws parallels to the early days of the Internet boom. Investors are selective, focusing on high-conviction assets supported by professional fund managers and in-house crypto teams. Himanshu Maradiya, Chairman of CIFDAQ, underscores this interest: “Bitcoin’s 70% CAGR over a decade is far more lucrative than gold’s 6–8%.”
Maradiya adds that affluent investors use a “high-risk, high-reward” approach, typically 5–8% exposure, spread across crypto, Web3 startups, and stablecoins, with strong custodial safeguards and regulatory compliance.
Family Fortunes, Next-Gen Focus
Experts agree that the trend is generational. Patel notes that heirs are initiating crypto discussions at the family level. Maradiya confirms that “next-gen heirs are integrating digital assets into succession and estate planning.”
However, Bitcoin isn’t without risk. It’s four times more volatile than gold, and Indian tax laws impose a flat 30% tax on gains and 1% TDS on trades. Despite this, measured allocation and digital infrastructure maturity are expected to boost confidence in the coming years.
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Patel predicts crypto will increasingly sit alongside gold, not replace it. Gupta concludes, “It’s not about abandoning tradition. It’s about adding something new, scarce, digital, and global.”