- Offers access/exposure to crypto assets without direct buying of cryptocurrencies
- Investors to be taxed under LRS as compared to the direct route of 30% tax on crypto gains and 1% TDS as per recent regulations
Mumbai, June 09, 2022: Vested Finance, an investment platform that enables Indian investors to invest in the US stock market, has added cryptocurrency-backed securities offered by Grayscale Investments to their premium offerings on the platform. By investing in the securities offered by Grayscale, Indian investors can gain exposure to Bitcoin, Ethereum, and other crypto assets indirectly without having to buy any cryptocurrency directly. Investing through this route comes under capital gains similar to investing in US equities and is not subject to 30% tax on crypto gains and 1% TDS on each transaction as introduced in Budget 2022.
Grayscale is the world’s largest digital currency asset manager with $40 billion AUM as of April 2022. Grayscale securities are traded in the over-the-counter (OTC) markets. Through Vested, Indian investors can invest in the following Grayscale securities:
- Grayscale Bitcoin Trust (GBTC)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Litecoin Trust (LTCN)
- Grayscale Ethereum Classic Trust (ETCG)
- Grayscale Bitcoin Cash Trust (BCHG)
Investors also have the option to invest in the Grayscale Digital Large Cap Fund (GDLC) if they want to invest in a basket of large-cap digital assets through a single fund. While about 90% of the fund currently is invested in Bitcoin and Ethereum, it also has exposure to Litecoin, Solana, Cardano, Avalanche, and other coins.
Investments in securities offered by Grayscale will not attract the 30% crypto tax in India and a 1% TDS on each transaction. Instead, it will receive the same tax treatment as investments in the US market. Short-term capital gains (if an investment is held for less than 36 months) will be taxed according to an individual’s tax slab. Long-term capital gains (if the investment is held for over 36 months) will be taxed at 20% with indexation benefits. Additionally, investors will not need to worry about the safekeeping of their crypto assets since this is taken care of by the asset manager – Grayscale.
Speaking of the launch of Grayscale products on Vested, Viram Shah, Co-Founder & CEO, of Vested Finance said, “At Vested, it has always been our goal to provide value to our investors by giving them access to the most innovative products in the global markets. The taxes on cryptoassets has made the investment in crypto less appealing for Indian investors. Through Grayscale, investors can get exposure to crypto by investing in a stock and at the same time not be subjected to high taxation. Also, they need not worry about the safety of their crypto holdings. This gives investors more choice, as they will now have an alternative way to add crypto exposure to their portfolio.”
Investors should note that all types of investment carry risk and past performance is not indicative of future returns, Also, it is recommended that you consult a tax advisor before making an investment decision.
For more information on the offering, you can visit this page.