As you all know that Indian Government is acting weird when it comes to crupto, they do not have any regulation, added hell lot of taxes and what not. As an individual buying Bitcoin we know that, there stance will not change anytime soon. And the final nail in the coffin came when they banned Binance and other apps.
Now as an investor, I am mainly invested for long term into two coins, Bitcoin and Hive. Now most of my investment is in Bitcoin in binance and thus I cannot use it since its banned. So next thing I can do is to invest in Bitcoin as legal way i.e. using newly launched ETF. Buying US stocks from India is very easy, and we have to thank INDMoney for it. So now using INDMoney I will be investing in th Bitcoin ETF from India and will have the tax benefit as I am not investing into the crupto directly.
So today I have opened my INDMoney account and my application is in progress. Once done I will be funding my account with the money and then start doing the SIP into the Bitcoin ETF. As you can see below, these are some of the ETF which was launched on 11th of this month and some of them.has very less expense ratio.
PC: fool.com
So I will see the volume of the above ETFs and then invest in someone them which has has expense ratio. Now coming to the tax implications, if I hold the Bitcoin ETF for more than 2 years, i have to pay 20% taxes whereas for less than 2 years I have to pay as per my tax slab. So the long term seems to be a good option because I will be getting 10% profit between buying ETF and buying Bitcoin directly from India.
So in this way buying the Bitcoin ETF is much better than buying Bitcoin directly if you are from India. Also we have to pay 1% tax on buying and selling which is over and above than the 30% tax. But people will also argue that you also have to pay some amount in buying US stocks from India. So that's why I am not counting that part as part of my calculation.