Eric Balchunas: Conversion of Bitcoin physical assets into spot ETF shares is deferred taxation, not tax avoidance

Bloomberg senior ETF analyst Eric Balchunas stated that when converting Bitcoin into spot Bitcoin ETF shares in physical form, investors do not currently recognize capital gains, and the original cost basis and holding period are extended. This mechanism is essentially deferred taxation rather than tax avoidance, and is applicable to the grantor trust structure. Tax official Clinton Donnelly added that physically investing Bitcoin in IBIT usually does not constitute a taxable event, but this judgment relies on the trust treatment of IBIT's grantor, and the IRS has not yet made a formal ruling on this.