xmrk ₿ ⚡️ on Nostr: Unpopular opinion: I found 2 cases where bitcoin investment funds *may* be useful, ...
Unpopular opinion: I found 2 cases where bitcoin investment funds *may* be useful, even for an individual (not just some pension funds who have to invest in regulated things). Note that by investment funds I mean both ETFs and mutual funds
Case 1: you have already invested in an investment fund. Then, you pay less taxes if you move your investment to a bitcoin fund than if you sell / redeem your old fund and buy btc. I am sure this is the case for mutual funds (seems fidelity has something like that, see https://marketrealist.com/p/crypto-mutual-fund-fidelity/), not sure about ETFs. Moving between funds is generally not taxed, only the final redemption is.
Case 2: You have some old cheap KYC btc, and your beloved county applies FIFO to compute capital gains tax. (Spain does, USA also.) You want to buy more btc, expect the price to rise sharply and plan to sell in 1-2 years. If you buy real BTC, you have to sell your cheap old BTC in those 1-2 years because of FIFO (well, at least you have to declare it so for tax purposes). If you instead buy a derivative now (such as an ETF) and sell it later, you are selling that derivative, not your precious old btc.
You could buy and sell the new stack non-kyc - additionally you should sell for cash or another untracable method - you do not need ETF then.
So those paper BTC may be worth it in some limited circumstances, and if you carefully weight the risks.
Wonder if the state will use some tax advantages to lure people into paper BTC ... and then rugpull. Can you redeem your paper BTC before the rugpull?
Case 1: you have already invested in an investment fund. Then, you pay less taxes if you move your investment to a bitcoin fund than if you sell / redeem your old fund and buy btc. I am sure this is the case for mutual funds (seems fidelity has something like that, see https://marketrealist.com/p/crypto-mutual-fund-fidelity/), not sure about ETFs. Moving between funds is generally not taxed, only the final redemption is.
Case 2: You have some old cheap KYC btc, and your beloved county applies FIFO to compute capital gains tax. (Spain does, USA also.) You want to buy more btc, expect the price to rise sharply and plan to sell in 1-2 years. If you buy real BTC, you have to sell your cheap old BTC in those 1-2 years because of FIFO (well, at least you have to declare it so for tax purposes). If you instead buy a derivative now (such as an ETF) and sell it later, you are selling that derivative, not your precious old btc.
You could buy and sell the new stack non-kyc - additionally you should sell for cash or another untracable method - you do not need ETF then.
So those paper BTC may be worth it in some limited circumstances, and if you carefully weight the risks.
Wonder if the state will use some tax advantages to lure people into paper BTC ... and then rugpull. Can you redeem your paper BTC before the rugpull?