How to buy the BITB Bitcoin ETF from India

Yes, an Indian resident can buy BITB — legally, in US dollars, under the RBI's Liberalised Remittance Scheme (LRS). BITB (Bitwise Bitcoin ETF) trades on NYSE Arca. It pays no distribution. BITB is a spot Bitcoin ETF managed by Bitwise Asset Management — a crypto-native asset manager that launched one of the first US Bitcoin funds in 2018. At 0.20% TER, BITB has the lowest annual fee among major Bitcoin ETFs, undercutting IBIT and FBTC (both 0.25%). For Indian investors holding 24+ months, BITB gains are taxed at 12.5% LTCG under Section 112, not the 30% VDA rate.

The 30-second version

• Legal and simple. Buy BITB via Vested, INDmoney, or Interactive Brokers India.
• No distribution. No US withholding or Form 44 complexity.
• India tax: BITB gains taxed at 12.5% LTCG after 24 months (Section 112) — not the 30% VDA rate. Shorter holds at slab rate.
• Estate-tax trap: US-situs ETF units — above $60,000 of total US-situs assets, up to 40% US estate tax, no treaty relief.
• The fee advantage: At 0.20% TER vs 0.25% for IBIT/FBTC, BITB saves 0.05% per year. On a ₹50L position over 10 years, that's approximately ₹2.5L saved in fees. For positions under $100,000, BITB's lower AUM and volume is not a liquidity concern.

Quick facts

Can an Indian resident buy it?	Yes — fully legal under the LRS
Ticker / exchange	BITB / NYSE Arca
TER (annual fee)	0.20%
AUM	~$4B
Custodian	Coinbase Custody Trust
How	IBKR, Rovia, INDmoney, or Vested
Minimum	A fraction of one unit
Distribution	None
India tax on gains	12.5% LTCG after 24 months; else your slab (Section 112 — not VDA)
Estate-tax risk	US-situs above $60k → up to 40%, no treaty relief
Annual compliance	Schedule FA every year you hold

How to buy it — 3 steps

1. Open an account and finish KYC. Use IBKR for the widest access and best execution, Rovia for a combined RSU + LRS experience, or INDmoney / Vested for a simple India-funded flow.
2. Fund via the LRS. Cap: $250,000/year. 20% TCS above ₹7 lakh — creditable against income tax.
3. Place the order. BITB has lower daily volume than IBIT — use limit orders for positions above $10,000 to avoid moving the market. For smaller positions, market orders work fine.

What BITB actually is

BITB holds spot Bitcoin — each unit represents a fractional share of the fund's Bitcoin holdings, with Coinbase Custody Trust as custodian. Bitwise manages the fund. The 0.20% TER is deducted by gradually reducing the Bitcoin-per-share ratio.

Tax treatment vs direct Bitcoin:

	BITB (LRS equity)	Direct Bitcoin (Indian exchange)
Tax rate	12.5% LTCG after 24 months	30% flat VDA rate, always
Holding period benefit	Yes	No
Loss offset	Against capital gains	Cannot offset other income

Bitwise differentiation: Bitwise is a crypto-native asset manager — founded by crypto researchers and investors. It publishes detailed Bitcoin research, manages the Bitwise 10 Crypto Index, and donates 10% of its profits to Bitcoin open-source development organisations (Bitcoin Core contributors, Chaincode Labs). This positioning is primarily relevant for investors who value the Bitcoin ecosystem alignment; for pure exposure, IBIT and FBTC are equally suitable.

The tax that actually matters

Holding period	Treatment	Rate
24 months or less	Short-term	Your slab rate
More than 24 months	Long-term	12.5%, no indexation

Full rules: how US stocks are taxed in India.

The $60,000 estate-tax trap

BITB units are US-situs assets. Above $60,000 of total US-situs holdings at death, US estate tax of up to 40% — no India-US treaty protection. See the estate-tax trap guide.

BITB vs IBIT vs FBTC — Bitcoin ETF fee comparison

	BITB	IBIT	FBTC
TER	0.20%	0.25%	0.25%
AUM	~$4B	~$80B	~$25B
Custodian	Coinbase	Coinbase	Fidelity Digital Assets
Best for	Cost-minimising investors	Largest positions, best liquidity	Fidelity self-custody preference

If you want…	Best route
Lowest-fee Bitcoin ETF	BITB
Highest AUM + liquidity	IBIT
Fidelity self-custody	FBTC
Full crypto/Bitcoin picture	Crypto and Bitcoin guide for Indian investors