🇮🇳 Can Indians invest in overseas Bitcoin funds?
Indians can invest up to $250k in overseas funds under the LRS scheme. The LRS Form A2 allows investments to overseas funds under purpose code S0001.
Updated on 18th January 2024
Indians can invest in US Bitcoin ETFs. In LRS, under purpose code S0001, Indians are allowed to buy equity shares (see image below). Buying a Bitcoin ETF means you buy shares of the ETF and you are not buying bitcoin directly.
The way to do that is to open a US brokerage account which allows you to buy spot Bitcoin ETFs. I have come across Vested Finance which lets you do this. For more information on the process, watch the video of my discussion with Viram, co-founder of Vested.
Older post dated 11th January 2024
The short answer is Yes. The long answer is it depends.
Indians can invest up to $250k in overseas funds under the LRS scheme. The LRS Form A2 allows investments to overseas funds under purpose code S0001*.
From experience, it is possible that your bank (authorised dealer) refuses to do the transfer to funds that have Bitcoin or crypto explicitly mentioned in the name of the fund or if they come to know it’s for crypto-related investments. If a good relationship exists with the bank, you might succeed, but it can be a hit or miss.
*Article by GoodReturns.in regarding investing in ETFs via purpose code S0001
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