You'll need to sign in or create an account to connect with an expert.
You should categorize it as Stock, or you can choose ETF. The difference between Mutual Funds and ETF is how they are being managed. Mutual funds usually are actively managed and ETFs are mostly passively managed. Grayscale Bitcoin Trust is solely and passively invested in Bitcoin, so it could be categorized as ETF. Stock is a broad definition and could be used in almost any case.
By purchasing shares of GBTC, the investor gains exposure to Bitcoin. What is then the answer to the question in TT, "did you acquire, sell, or exchange any virtual currency in 2020?"
Technically you are buying shares in a Trust that deals with Bitcoin and not the Bitcoin itself. However, if you check Yes, it won't affect your return and will indicate to the IRS that you are being transparent.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
chazzsmith2002
New Member
cparke3
Level 4
grannysue1996
Level 1
JFAnSC
Level 2
praxisknight
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.