Despite regulatory challenges, Indian investors are optimistic following the approval of the Bitcoin ETF.


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Bitcoin Accelerator ETF Approval: A Game Changer for Indian Investors

The recent approval of spot bitcoin exchange-traded funds (ETFs) by the Joint Securities and Exchange Commission (SEC) created a wave of excitement throughout the industry. Nonetheless, Indian retail and institutional investors see a glimmer of hope after a difficult period for the crypto industry. Even so, Indian retail and institutional investors see a glimmer of hope after a dismal period for the crypto industry.

Sumit Gupta, co-founder of CoinDCX, emphasized the profound implications of this approval, predicting long-term gains and leading wherever adopted “The approval opened the doors for retail investors, making bitcoin transactions possible.” easily through traditional broker accounts,” explained Gupta.

Institutional drift: pave the way for cryptomarket development

With the green light from the SEC, institutional funds are expected to play a more important role. Industry players say hedge funds, sovereign wealth funds, and registered financial advisers could contribute to the unprecedented growth of ETFs.

Avinash Shekhar, CEO of Pi42, highlighted institutional capital inflows and predicted increased price stability and acceptance of bitcoin in the market He said, “Bitcoin ETF approval in the US is a pivotal moment for the cryptocurrency landscape; the opportunity to launch such an ETF is very much in India with traditional financial markets.”.

Tax implications and restrictions for Indian investors:

However, Indian investors may face hurdles in investing in bitcoin ETFs due to their presence in foreign companies. Additionally, the Tax Collected at Source (TCS) and Liberal Remittance Scheme (LRS) rules pose challenges. Implemented in 2023, the 20% TCS applies to deposits above Rs 7 lakh, which could affect profits for investors.

The impact of bitcoin ETF approval on price stability and acceptance:

The approval of Bitcoin ETFs in the United States is an important step towards the legalization of an asset that has been on the sidelines for a long time. This decision is expected to enhance bitcoin’s position as a new asset class in spot ETFs. Market experts expect a wider acceptance of bitcoin and a stable price in the global market.

Bitcoin status: from investment to scarce asset

It is important for investors to understand the state of the coin. Rather than being compared to a reserve currency, BTC should be viewed as a scarce asset with a steady supply that decreases over time. This approach can help investors navigate the complexities of the market and make informed decisions.

Opportunities and challenges in India’s crypto landscape:

Despite tighter regulations, taxes, and a prolonged crypto winter, India remains one of the biggest markets for investing in digital assets. Optimists in the market believe that bitcoin ETF approval will facilitate more discussions in the Indian ecosystem, potentially leading to the introduction of local crypto ETFs in the future

In conclusion, bitcoin ETFs certified in the US. have far-reaching implications for Indian investors and the wider crypto landscape. While challenges such as regulatory hurdles and tax implications remain, the approval marks a new era of opportunity and growth for the crypto industry in India.

The other opinion is:

Conversely, market participants believe Bitcoin ETFs may not make sense for retail investors. Such devices are usually chosen by organizations for passive printing. Spot bitcoin ETFs are already operating in Europe, Canada, and Australia, but approval from the U.S. market appears to be lacking. The SEC offer is a huge game-changer in the crypto-space

Market participants reaffirmed that India has the opportunity to lead the global Web3 transformation, benefit from economies of scale, and attract investments for Web3 startups. Overall, it will benefit all living things. However, after the approval, the industry became optimistic and expected some positive developments in taxation in India.

Gupta from CoinDCX said there is a need for greater tax intervention. “We, along with other crypto exchanges, have submitted a request to the government to reconsider the 1 percent TDS and propose to reduce it to 0.01 percent. We expect further acceptance by the market, if approved, at the request of the industry.”

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