Posted 12/16/2023, 5:13:15 AM
Grayscale: Bitcoin Trust Not Taxable Like Mutual Funds When Selling Bitcoin for Redemptions
- Grayscale says its Bitcoin Trust (GBTC) is a grantor trust, meaning no tax implications for investors when Bitcoin is sold to meet redemptions
- Explains difference from mutual funds - grantor trusts not taxable events for non-redeeming shareholders
- Considering potential tax implications of spot Bitcoin ETFs needing to sell Bitcoin for cash redemptions
- Follows recent meeting between Grayscale and SEC to discuss spot Bitcoin ETF application
- Comes after SEC pushed back decision on Grayscale's spot Ethereum ETF application until January 2024