The tax authorities just moved on Monday, and they’re targeting the crypto ETF tax playbook.
Notice 2026-62 paired with Revenue Ruling 2026-20—put simply, this is about certain funds using in-kind redemptions: they hand the appreciated digital assets to market makers, and the gains aren’t recognized on the books. The tax authority believes this approach goes against the legislative intent, calling out, among other things, funds holding cryptocurrencies, trust interests, and a range of stock-swapping hedging structures. The public consultation received comments up to October 28; later, the rules may be applied retroactively, but for now this isn’t the final draft.
But issuing guidance doesn’t mean a sell-off is happening tonight.
Mainstream spot bitcoin trusts—such as grantor trusts—aren’t the same as ordinary spot holding funds. Don’t rush to one-size-fits-all panic. The consultation window is still open; the industry is still drafting comment letters. The real implementation depends on how things are finalized after October 28.
As for the market, BTC is still hovering around 83,200. The intraday high is about 84,380, and the low is about 82,560. It hasn’t even dropped 0.4%. Coinbase spot is around 83,170. It’s soft—not a breakdown.
For those holding long positions: take a bit off on the bounce in the 83,800–84,500 area; you can still hold near 83,000. If you lose 82,600, then admit the mistake.
If you don’t have shorts, don’t chase the sell-off—wait until the tax authority releases the final position.
Next, focus on two things: whether there are any hard rules after the October 28 consultation deadline, and whether spot ETFs change their redemption structure in advance. Watch the timeline—don’t obsess over fear-mongering slogans.
$BTC
Notice 2026-62 paired with Revenue Ruling 2026-20—put simply, this is about certain funds using in-kind redemptions: they hand the appreciated digital assets to market makers, and the gains aren’t recognized on the books. The tax authority believes this approach goes against the legislative intent, calling out, among other things, funds holding cryptocurrencies, trust interests, and a range of stock-swapping hedging structures. The public consultation received comments up to October 28; later, the rules may be applied retroactively, but for now this isn’t the final draft.
But issuing guidance doesn’t mean a sell-off is happening tonight.
Mainstream spot bitcoin trusts—such as grantor trusts—aren’t the same as ordinary spot holding funds. Don’t rush to one-size-fits-all panic. The consultation window is still open; the industry is still drafting comment letters. The real implementation depends on how things are finalized after October 28.
As for the market, BTC is still hovering around 83,200. The intraday high is about 84,380, and the low is about 82,560. It hasn’t even dropped 0.4%. Coinbase spot is around 83,170. It’s soft—not a breakdown.
For those holding long positions: take a bit off on the bounce in the 83,800–84,500 area; you can still hold near 83,000. If you lose 82,600, then admit the mistake.
If you don’t have shorts, don’t chase the sell-off—wait until the tax authority releases the final position.
Next, focus on two things: whether there are any hard rules after the October 28 consultation deadline, and whether spot ETFs change their redemption structure in advance. Watch the timeline—don’t obsess over fear-mongering slogans.
$BTC