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Grayscale mulls over potential tax implications for spot Bitcoin ETFs

Grayscale is evaluating the possible tax consequences associated with spot Bitcoin (BTC) exchange-traded funds (ETF) following inaccurate reports circulating about unfavorable tax implications.

In a series of posts on X (formerly Twitter), Grayscale clarified that retail investors of the Grayscale Bitcoin Trust (GBTC) are not expected to incur tax implications when the fund sells Bitcoin to generate cash for meeting share redemptions.

As we work to obtain the appropriate regulatory approvals to uplist $GBTC to NYSE Arca, we’re considering the potential tax implications for spot Bitcoin ETFs needing to sell $BTC holdings for cash to fulfill share redemptions.
Here’s why we’re talking about this now. (1/7)

— Grayscale (@Grayscale) December 15, 2023

Grayscale explained this is due to the GBTC being structured as a grantor trust, which means the entity establishing the trust is…

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