grayscale: Vested Finance offers exposure to crypto via Grayscale’s investment products

New Delhi: Global investment platform Vested Finance has added cryptocurrency-backed securities offered by Grayscale Investments to their premium offerings.

Vested Finance is a platform that enables Indian investors to invest in the US stock market. The premium customers will now get the option to put their money in crypto assets as well.

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 tax similar to investing in US equities and is not subject to 30 per cent tax on crypto gains and 1 per cent TDS on each transaction as introduced in the 2022 Budget.

Short-term capital gains (if an investment is held for less than 36 months) will be taxed according to an individual’s tax slab.

Similarly, in the case of long-term capital gains (if the investment is held for over 36 months) will be taxed at 20 percent with indexation benefits. Investors will be charged zero brokerage, but they will have to pay a 2.5 percent transaction fee.

Investors will not need to worry about the safekeeping of their crypto assets since this is taken care of by the asset manager – Grayscale.

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 largecap digital assets through a single fund.

While about 90 percent of the funds are currently invested in Bitcoin and Ethereum, it also has exposure to Litecoin, Solana, Cardano, Avalanche, and other tokens.

Viram Shah, Co-Founder & CEO, of Vested Finance, said taxes on crypto assets 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 subject to high taxation,” he added. “Also, they need not worry about the security of their crypto holdings.”


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