{"id":213805,"date":"2023-12-16T08:05:53","date_gmt":"2023-12-16T02:35:53","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=213805"},"modified":"2023-12-16T08:05:53","modified_gmt":"2023-12-16T02:35:53","slug":"grayscale-explains-spot-bitcoin-etf-tax-structure-what-it-means-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/grayscale-explains-spot-bitcoin-etf-tax-structure-what-it-means-crypto-news\/","title":{"rendered":"Grayscale Explains Spot Bitcoin ETF Tax Structure; What It Means – Crypto News"},"content":{"rendered":"

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Amid widespread expectations on the approval of spot Bitcoin ETF filings by the U.S. Securities and Exchange Commission (SEC), Grayscale cleared the confusion around the tax implications for Bitcoin Trust (GBTC) shareholders.<\/p>\n

Also Read: Polygon Labs Shifts Focus from Edge to CDK Expansion<\/strong><\/a><\/p>\n

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GBTC Conversion & Tax Implications<\/h2>\n

Earlier, a Bloomberg Intelligence report claimed Grayscale may have to buy and sell Bitcoin (BTC) for the ETF creations and redemptions. The buying and selling is taxable and could complicate the GBTC conversion into spot ETF, it explained<\/a>. However, the company clarified that\u00a0the spot commodity ETFs are generally structured to be grantor trusts for tax purposes. Essentially, capital gains tax is not applicable for grantor trusts, it added.<\/p>\n

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\u201cNo such spot commodity ETF that is a grantor trust would be at a disadvantage relative to any other spot commodity ETF because of the carrying value of the ETF\u2019s assets.\u201d<\/p>\n<\/blockquote>\n

Meanwhile, it appears that the SEC is considering the same Grayscale filing for conversion of GBTC into a spot Bitcoin ETF. On August 29, 2023, US Court of Appeals for the District of Columbia Circuit ruled<\/a> in favor of Grayscale\u2019s petition for review of the Commission\u2019s decision to deny the approval. Although the judgment did not directly order for the conversion of GBTC, it paved a way for approval in a set timeline.<\/p>\n

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Approval In The Making?<\/h2>\n

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In the space of last two weeks, companies seeking spot Bitcoin ETF approval like Blackrock, Grayscale, Franklin Templeton and Fidelity have held meetings with the officials at the US SEC. In a latest, Bloomberg Intelligence analyst James Seyffart said<\/a> the Blackrock representatives held deliberations with the SEC yet again, on December 14, 2023. Does this mean the SEC is targeting the next available window of opportunity between January 6-10, 2023 for approval of the first ever spot Bitcoin ETF in the United States?<\/p>\n

Meanwhile, the Bitcoin (BTC) price<\/a> is currently trading at its highest range in around 15 months, in likely anticipation of institutional money flow thanks to the spot ETF and the Bitcoin Halving<\/a> event scheduled for the second quarter of 2024.<\/p>\n

Also Read: JP Morgan Grew Its Crypto Team By 200%, Amid CEO\u2019s Criticism Of Bitcoin<\/strong><\/a><\/p>\n

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Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1,200 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at anvesh@coingape.com or twitter.com\/BitcoinReddy or linkedin.com\/in\/anveshreddybtc\/ <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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Amid widespread expectations on the approval of spot Bitcoin ETF filings by the U.S. Securities and Exchange Commission (SEC), Grayscale cleared the confusion around the tax implications for Bitcoin Trust (GBTC) shareholders. Also Read: Polygon Labs Shifts Focus from Edge to CDK Expansion GBTC Conversion & Tax Implications Earlier, a Bloomberg Intelligence report claimed Grayscale […]<\/p>\n","protected":false},"author":2,"featured_media":192751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-213805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/213805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=213805"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/213805\/revisions"}],"predecessor-version":[{"id":213807,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/213805\/revisions\/213807"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/192751"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=213805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=213805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=213805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}