Introduction
In the last few years, crypto has become one of the hottest topics in the world. People talk about Bitcoin, Ethereum, Solana, and many other coins. But many Indian investors still feel confused —
👉 How to invest safely in crypto?
👉 What if I don’t want to buy coins directly?
The answer is simple — Crypto ETFs (Exchange-Traded Funds).
They let you invest in cryptocurrencies without buying and storing the coins yourself.
In this post, I’ll explain everything in very easy language, step by step. That is How To Invest in Crypto ETFs from india.
What is a Crypto ETF?
A Crypto ETF (Exchange-Traded Fund) is like a mutual fund that invests in cryptocurrencies.It doesn’t mean you buy Bitcoin or Solana directly. Instead, you buy a share of a fund that holds those coins for you.
Example:
If you invest ₹1,000 in a Bitcoin ETF, you own a small part of that fund, and the value of your share goes up or down with the Bitcoin price.
In short —
👉 You get crypto exposure
👉 Without worrying about wallets or private keys
👉 And you can trade it easily on stock exchanges
Types of Crypto ETFs
There are mainly two types:
1.Spot Crypto ETF
- The fund actually holds real crypto coins.
- Example: Bitwise Spot Solana ETF, Bitcoin Spot ETF.
- Safer and more transparent.
2. Futures Crypto ETF
- The fund doesn’t hold real crypto.
- It buys futures contracts (price bets on crypto).
- Example: Bitcoin Futures ETF (like ProShares BITO in the US).
Are Crypto ETFs Legal in India?
Currently (as of 2025), India has not approved any local crypto ETF yet.
That means you cannot directly buy a crypto ETF listed on Indian stock exchanges like NSE or BSE.
BUT —
you can still invest in international crypto ETFs through a few legal methods.
Let’s see how 👇
How to Invest in Crypto ETFs from India (Step by Step)
Step 1: Open an International Investment Account
You can open an account with Indian platforms that allow global investing, such as:
- INDmoney
- Groww Global
- Vested Finance
- HDFC Securities Global
- ICICI Direct Global
These platforms let you invest in US stock markets where most crypto ETFs are listed.
Step 2: Complete KYC (Know Your Customer)
Upload your PAN card, Aadhaar, and bank details.
KYC is mandatory before you can invest internationally.
Step 3: Fund Your Account
Transfer money from your Indian bank account.
Under the Liberalised Remittance Scheme (LRS), you can legally send up to $250,000 (about ₹2 crore) per year abroad for investments.
Step 4: Choose a Crypto ETF
Here are some popular crypto ETFs you can explore:
| ETF Name | Based On | Ticker | Country |
|---|---|---|---|
| Bitwise Bitcoin ETF | Bitcoin | BITB | USA |
| iShares Bitcoin Trust (BlackRock) | Bitcoin | IBIT | USA |
| VanEck Ethereum ETF | Ethereum | ETHV | USA |
| Bitwise Solana ETF | Solana | BSOL | USA |
You can research these ETFs on websites like Yahoo Finance or CoinDesk before investing.
Step 5: Place Your Order
Once you’ve selected an ETF, just click Buy like you do for normal stocks.
You can start even with small amounts (e.g., ₹2,000–₹5,000).
Step 6: Track Your Investment
Check your portfolio regularly.
Remember — crypto prices change very fast, so keep an eye on market trends.
Benefits of Investing in Crypto ETFs
- Easy and Safe: No need to manage wallets or private keys.
- Regulated: ETFs are controlled by stock market laws (especially in the US).
- Diversified: Some ETFs hold multiple coins.
- Tax Transparency: You know exactly where your money is going.
- Institutional Trust: Managed by big companies like BlackRock, Bitwise, and VanEck.
Risks You Should Know
Even though Crypto ETFs are safer than buying coins directly, there are still risks:
- Price Volatility: Crypto markets move fast — profits and losses can be big.
- Regulation Risk: Rules can change anytime in India or abroad.
- Currency Conversion: You invest in USD, so INR-USD rates matter.
- Taxation: You may need to pay tax on profits as per foreign income rules.
Always invest only what you can afford to lose.
Tax Rules for Indian Investors
If you invest in international ETFs (including crypto ETFs):
- You must report them in your Income Tax Return (ITR).
- Gains are usually taxed as capital gains.
- If you hold for less than 3 years → Short-term capital gains (as per your tax slab)
- If you hold for more than 3 years → 20% with indexation benefit
(Consult a tax expert for latest updates.)
Future of Crypto ETFs in India
Many experts believe that India will soon allow local crypto ETFs once regulations become clear.
Big institutions like CoinDCX, WazirX, and even Indian mutual funds are watching the trend closely.
Once SEBI gives approval, you might be able to buy crypto ETFs directly through Zerodha or Groww, just like any other stock!
Quick Tips Before You Start
- Research the ETF company — check if it’s trusted (like Bitwise or BlackRock).
- Start small — don’t put all money in one go.
- Understand the underlying crypto (Bitcoin, Ethereum, Solana, etc.).
- Avoid fake links or apps — only use trusted platforms.
- Stay updated — crypto markets change daily.
Example Scenario (for Clarity)
Let’s say you invest ₹10,000 in Bitwise Solana ETF (BSOL) using the INDmoney app.
- After 6 months, if Solana’s price increases by 20%, your ETF value may also rise by around 20%.
- So your ₹10,000 becomes ₹12,000.
- If Solana falls, the ETF price will also fall.
It’s simple — ETF follows the price of that coin.
Conclusion
Investing in Crypto ETFs from India is not as hard as it looks.
You just need the right platform, basic research, and a little patience.
The main benefit is —
✅ You get exposure to the world of crypto
✅ Without worrying about storage, wallets, or scams
Crypto ETFs are the bridge between traditional stock investing and modern digital assets.
If you want to start small, research well, use trusted apps, and think long-term — you can be part of the next big financial wave. 🌊