SEBI warns digital gold is unregulated—will investors shift to regulated gold ETFs via mutual funds?

SEBI's warning that Digital Gold is unregulated has lit up online market chatter. Investors are weighing regulated paths like Gold ETFs via mutual funds against unregulated apps, sparking a safety-vs-returns debate. That debate spills into talks about fees, tracking, and protections, and it’s shaping how people think about gold exposure ^[1].

What happened SEBI clarified that digital gold platforms operate outside its oversight; regulated options include Gold ETFs and Electronic Gold Receipts (EGRs) ^[1]. The move underscores a clear divider between regulated routes and slick, app-based runs on Digital Gold ^[1].

Why it matters for safety Online platforms face counterparty and operational risks; there’s no investor protection under SEBI for unregulated products. Investors also raise GST questions in this space, noting complexity around tax treatment and disclosures ^[2]. The chatter highlights how platforms like CRED, PhonePe, and Paytm promote digital gold, even as caution grows ^[2].

ETF vs MF debate in practice In threads, investors point to regulated exposure as a safer anchor. Some push Gold ETFs (e.g., GoldBees) for liquidity, while others favor Mutual Funds for active management ^[4]. The sense: trackable, regulated gold exposure via funds is edging out unregulated digital options ^[3].

Investor sentiment and caution Overall, the mood is shifting toward regulated exposure with clearer protections and price transparency, rather than opaque app-based gold purchases ^[2].

Closing thought: as regulators tighten oversight, expect more investors to route gold exposure through Gold ETFs via mutual funds rather than unregulated digital platforms ^[1][2].

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