Crypto asset: Karnataka shows highest conviction in blue-chip assets

Bengaluru: In the first quarter of 2026, the country's crypto ecosystem continued to mature, and Karnataka demonstrated the highest conviction in blue-chip assets.

Crypto investing and trading platform CoinSwitch, in its latest report 'India's Crypto Portfolio: How India Invests', highlighted that with 32 per cent, Karnataka leads with the highest blue chip allocation among all states. Its portfolios reflect a stability-first approach, with balanced exposure across large, mid-cap, and small-cap companies, the report said.

With Bengaluru contributing 68.4 per cent, activity remains heavily concentrated in its tech-driven ecosystem. With 9.2 per cent, Bitcoin remained the most invested asset, while also dominating trading activity at 17.4 per cent.

Alongside Bitcoin, meme coins such as Dogecoin (6.0 per cent) and Shiba Inu (4.4 per cent) continue to feature prominently in Indian portfolios.

The report said, across states, portfolios show a balanced mix of blue-chip, large-, mid-, and small-cap assets, signalling a shift from hype-driven investing to more thoughtful allocation strategies this quarter.

While people in the age group of 26–35 dominate at 48 per cent, the fastest growth this quarter came from the 35+ segment, driven by Gen X and older millennials entering the market.

As far as crypto adoption is concerned, Uttar Pradesh (12.9 per cent) and Maharashtra (12.3 per cent) lead by a noticeable margin, setting the pace for major crypto participation. Karnataka (8.1 per cent) and New Delhi (7.4 per cent) continue to anchor the next layer.

“What stands out this quarter is not just who is investing, but how. The rise of the 35+ segment, alongside increased dip buying and the continued dominance of long-term holding, signals a clear shift toward a more mature market," Ashish Singhal, Co-founder of CoinSwitch, said.

Both February 5 and 6 recorded peak trading volumes, coinciding with market corrections observed during that period, indicating increased buying activity during price dips, the report mentioned.

Long-term investing continues to dominate, with 61.3 per cent of investors holding assets for more than a year, while 28.3 per cent engaging in momentum trading and 20.4 per cent adopting dip-buying strategies.