Grayscale researches the potential tax implications of Bitcoin exchange-traded funds.
In a series of posts on Platform
Gray Scale explained that this is because the GBTC Fund is considered a grantor trust, which means that the entity that created the trust is considered the owner of the assets, when it comes to income and estate taxes.
“Cash redemptions attributable to donor funds are not taxable events for shareholders such as retail investors,” the circular, outlining the differences between a Gray Scale fund and mutual funds, said. “Unlike mutual funds and many other ETFs, All commodity spot ETFs such as gold are largely designed to be donor trusts for tax purposes. We take the position that GBTC is properly treated as a grantor credit.”
This comes after recent reports indicating that the US Securities and Exchange Commission held another meeting with Grayscale to discuss its application to launch a spot Bitcoin ETF.
