Top Indian Bitcoin exchanges are recording an over 100% increase in trading volumes in the last few days even as the
value of the digital currency continued to soar with a single Bitcoin trading over the $66,000 mark on Thursday, buoyed by US regulatory permission for an investment vehicle allowing trade in Bitcoin futures granted earlier on Wednesday.
In India, this has prompted crypto investors to expand their holdings in anticipation of further gains, industry executives said. Mumbai-based exchanges WazirX — which notched up a 167% jump in trading volumes — and CoinDCX, which recorded a 200-300% hike, are leading the rally. While Delhi-based BuyUCoin clocked a 130% increase, and Bengaluru’s Coinswitch Kuber has seen a 100% jump since Wednesday.
On Thursday, the global crypto market touched $2.6 trillion for the first time in its history. Enthused by the rapid gain in their Bitcoin holdings, Indian crypto investors are ratcheting up their holdings in digital currencies, industry executives said.
“Forty-five per cent more buy-trades along with a 28% increase in sell-trades has been observed recently,” said Shivam Thakral, CEO of BuyUcoin. “We have seen inactive users creating fresh portfolios around Bitcoin and other top 10 crypto assets along with a considerable increase in crypto-SIP purchases,” he said.
This points to a marked difference in investor behaviour compared with previous cryptocurrency rallies. For instance, when Bitcoin notched fresh highs in August this year, Indian investors had booked profits. In contrast, this week crypto enthusiasts are increasing their holdings in cryptocurrency investments, industry executives pointed out.
Since Wednesday, Bitcoin worth almost $13.8 million has been traded on WazirX, while at Coinswitch Kuber trades totted up to $25 million.
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“Investors have moved from talking about the risks of crypto to the risks of not having crypto in their portfolios,” said Vikram Rangala, director at crypto exchange ZebPay.
“A lot of people are reaching out and are interested in investing because they think the market will still go up,” Sachin Jain, co-founder of Amesten Capital said.
“This rally has some juice. This is what a super cycle looks like a repeat of 2013 so we are really excited,” he added.
Bitcoin hit a lifetime high on Wednesday lifted by the launch of ProShares Bitcoin Strategy exchange-traded funds (ETFs), the first such fund approved by the US Securities and Exchange Commission (SEC) to invest in Bitcoin futures.
Industry trackers are of the view that the response to the current rally from Indian Bitcoin investors points to a maturing market, with a large number of investor also opting for alternative coins as Bitcoin prices surged.
“Shortly after the Bitcoin price jump, a decent single-digit percentage increase in top platforms like Ethereum and Solana was also noticeable,” a CoinDCX spokesperson said.
Industry trackers say that even FOMO or fear of missing out could be at play every time the cryptocurrency reaches new heights.
Crypto experts say that investors are now looking at rapid gains and crypto investments have delivered on that promise despite volatility.
“There is a big trend in the DeFi (decentralised finance) world wherein you make earnings on a daily basis based on the valuation of your assets no matter if the price goes down or up, you still make money every day on your otherwise idle holdings,” said Santhosh Bhhandarii, co-founder, United Farmers Finance, a crypto farming platform.
In recent months, several crypto exchanges and platforms have introduced a wide range of products and services to make it easier for new traders to invest in the market that has also resulted in widespread adoption.
For instance, Siddharth Kothari, 29, chief investment strategist of his family fund Om Kothari Group opted for Systematic Investment Plan (SIPs) to invest in crypto. Kothari opted for SIPs because his investment is for the long term and he did not want to get into the hassle of timing the market.
A few other investment firms in the US are also planning to list their ETFs soon. Investment company Valkyrie is also expected to launch its ETF this Friday.