Vested Finance, an investment platform that enables Indian investors to invest in the US stock market, has added cryptocurrency-backed securities offered to their premium offerings on the platform. The cryptocurrency backed securities are being offered by Grayscale Investments, a digital currency investing company.
Vested Finance said that 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.
“Investors can get exposure to crypto by investing in a stock. This will give them an alternative way to add crypto exposure to their portfolio,” Viram Shah, co-founder & CEO, Vested Finance said.
Grayscale is notable for being the digital currency asset manager with the largest AUM of $40 billion as of April 2022. Grayscale securities are traded in the over-the-counter (OTC) markets. Through Vested Finance, 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), and Grayscale Bitcoin Cash Trust (BCHG).
Investors will 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 per cent of the fund is currently invested in Bitcoin and Ethereum, it also has exposure to Litecoin, Solana, Cardano, Avalanche, and other coins.
Shah said the government’s decision to tax crypto assets has made investing in crypto less appealing to Indian investors, adding that their product would “provide value to our investors by giving them access to the most innovative products in the global markets.”
He added that investors will not have to worry about the safekeeping of their crypto assets since this is taken care of by the asset manager – Grayscale.
He further said that investments in these will attract the same tax treatment as investments in the US market, i.e., short-term capital gains if the investment is held for less than 36 months, and long-term capital gains if the investment is held for over 36 months, and they will be taxed accordingly.