Grayscale: Spot Bitcoin ETF in cash model won’t have negative tax implications for investors
Grayscale has issued a statement explaining the potential tax issues for investors in spot Bitcoin ETFs. Unlike mutual funds and many other ETFs, almost all spot commodity ETFs (such as gold) are constructed as trusts for tax purposes. The tax treatment of trusts is different from that of mutual funds, and capital gains or losses in mutual funds may affect the remaining shareholders in the fund. This means that, compared to other types of spot Bitcoin ETFs, any spot Bitcoin ETF that qualifies as a grantor trust will not be at a tax disadvantage in terms of cash redemption based on the book value of ETF assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Australian Court Overturns License Ruling Against Block Earner, Sides with Fintech in Landmark Crypto Case
In a significant legal win for Australia’s crypto and fintech industry, the Federal Court has overturned a previous ruling that required digital finance firm Block Earner to obtain a financial services license for its discontinued fixed-yield crypto product.
Symbiotic Raises $29 Million to Build Universal Staking Coordination Layer
Symbiotic, a decentralised finance (DeFi) protocol, has secured $29 million in a funding round led by Paradigm and cyber.Fund.
Bitcoin Surpasses Amazon, Approaches Google’s Market Cap
Michael Saylor Backs New SEC Chair for Bitcoin Growth
Trending news
MoreCrypto prices
More
