As cryptocurrency starts gaining popularity in India, many family offices and wealthy individuals decided to join this bandwagon.
After watching their growing interest in cryptocurrency, the exchanges welcome wealthy individuals with personalized services.
As per the reports, WazirX, which is considered to be the largest crypto exchange of India by volume, has recently formed an over-the-counter team to process bulk trading. This way, the exchange would be able to meet the demands of high net-worth individuals.
Nischal Shetty, the CEO of WazirX, specified that wealthy individuals, who are joining the crypto industry, are investing 3 percent to 5 percent of their portfolio in cryptos.
He further stated, “The number of HNIs have been larger than the last 8-12 months, in comparison to the last two years. I think they all want exposure because they believe in hedging and in having a diverse portfolio.”
Siddharth Menon, the Chief Operating Officer of WazirX, claims that there have been 30x more user sign-ups by HNIs and family offices on the platform. Notably, these users often trade over $25 million in a month or purchase cryptocurrencies worth over $100,000. The HNIs and family offices receive specialized services from the exchange, which include customized trading reports and support with taxation and compliance.
A year ago, Zebpay, another Indian crypto exchange, started offering OTC services. Any individual or institution purchasing a minimum of 5 bitcoins received a personalized service from the exchange.
According to Vikram Rangala, the COO of Zebpay has claimed that every month, the exchange trades crypto worth several million dollars. “It is growing quite substantially in India. Family offices are also looking to diversify into crypto. They may have started with holdings in blue chip stocks, and then gold. But now a lot of them are coming to us looking for bitcoin,” said Rangala.
It has been reported that in future, Zebpay is planning to start full-service wealth management to help its wealthy clients in developing a diverse digital asset portfolio.
Currently, India has not introduced any framework to regulate the crypto industry, therefore, many licensed advisers and wealth managers of family offices hesitate to offer formal guidance to them. The advisers and managers have been taking courses in crypto to learn more about it, in order to help their clients.
A report published by PriceWaterhouseCoopers stated that in 2020, the vast majority of HNIs or family offices invested in crypto hedge funds which increased by 90 percent, globally.
Several industry experts believe that many wealthy investors started buying bitcoin last year, and now they consider it to be a serious asset class, which means it is a long-term investment thing.
As per Sachin Jain, the co-founder of Amesten Capital, since 2017, crypto has come a long way. Jain is a wealth manager who manages the portfolio of HNIs and institutions. The owner of $15 million AUM added, “People are no longer looking at it as a speculation. The same people are seeing it as a future currency or a store of value.”