Karnataka turns into risk-aware crypto market; 30.1% investment in blue-chip assets

Bengaluru: Karnataka has turned into the country's most risk-aware crypto market as the state showed a strong preference for blue-chip assets at 30.1 per cent and large-cap at 31.2 per cent. Bitcoin and XRP continued to dominate both investment and trading activity, signalling clear preference for high-liquidity, high-conviction tokens, data from Bengaluru-based crypto trading platform CoinSwitch showed.

In its 'India's Crypto Portfolio 2025: How India Invests' report, CoinSwitch said in the south, Karnataka accounted for 7.9 per cent of the total invested value, supported by Bengaluru's strong technology ecosystem and its early-mover advantage in digital finance. While Uttar Pradesh topped with 13 per cent of the total invested value, Maharashtra followed at 12.1 per cent. CoinSwitch has over 2.5 crore users, and it is backed by global investors such as Coinbase Ventures, Tiger Global and Sequoia Capital India to the tune of $300 million.

According to the report, in 2025, Bitcoin (BTC) bounced back to reclaim the top spot, making up 8.1 per cent of total holdings. Dogecoin (DOGE) slipped to second place at 6.0 per cent. Ripple (XRP) climbed to 3.9 per cent, emerging as a sleeper hit, while Cardano (ADA), Polygon (POL), Internet Computer (ICP), and Solana (SOL) maintained their positions as steady favourites, each hovering between 2 and 3 per cent.

"The past year has been significant for the global crypto industry. Major policy shifts, from the GENIUS Act advancing in the US to UK formally recognising crypto as property, signal that digital assets are entering the mainstream of global finance," CoinSwitch co-founder Ashish Singhal said.

The world is no longer debating whether crypto matters; the focus is now on how to integrate it responsibly and at scale, he added.

The report also highlighted that the crypto landscape is evolving with participation spread beyond metros. While Tier-2 regions account for 32.2 per cent of the market, Tier-3 and Tier-4 cities contribute about 43.4 per cent. Also, interestingly Andhra Pradesh has become the country's first state where women outnumber men in crypto investing. Overall, women make up 12 per cent of the user base.

When it comes to the age of investors, the report showed the 26-35 age group is taking the lead, accounting for 45 per cent of all crypto investors. The 18–25 age group follows with 25.3 per cent, and the 36-45 group contributes 19.1 per cent.

Avoid forced selling

WazirX founder Nischal Shetty said two weeks to 2026, and the rupee hit an all-time low against the dollar. The optimism around crypto could see a setback in this backdrop as speculative sell offs especially for equities and crypto can be anticipated. Leveraged positions are also at the risk of being liquidated to meet the price difference created by the rupee fall.

"Historically, this has always led to sell off and stepping away from risk on assets but we’ve seen patterns break this year. Indian crypto holders with USDT can continue crypto-to-crypto trading without touching fiat, avoiding forced selling. While there is a large dependence on INR, capital inflow from retail investors who are largely holders can continue towards blue chip tokens like BTC, ETH, etc," he explained.

Shetty said crypto to crypto trading could see a possible uptick alongside USDT based buying activity given the potential that is projected for crypto in 2026. He added that buying and trading crypto without INR exposure isn’t illegal in India given all tax compliance is adhered to.