Spot Bitcoin & Ethereum ETF Tax Guide (2026): Grantor Trust Form 1099-B, WHFIT & Wash Sales
Unlike direct spot Bitcoin or Ethereum (which is reported on Form 1099-DA and currently exempt from the IRC § 1091 Wash Sale Rule), US Spot Bitcoin and Ethereum ETFs (IBIT, FBTC, BITB, ETHA) are exchange-traded securities structured as 1933 Act Grantor Trusts (WHFITs).
- IRC Section
- 26 U.S.C. §§ 671, 1091, 1256 · Treas. Reg. § 1.671-5 (WHFIT)
- IRS Form & Line
- IRS Form 1099-B (Boxes 1d, 1e, 1g Wash Sale) + WHFIT / Form 6781
- 2026 Federal Rate
- 0% / 15% / 20% LTCG (>365d) · 10%–37% STCG (Rev. Proc. 2025-32)
- 3.8% NIIT Applicability
- 3.8% Form 8960 Surtax > $200k Single / $250k MFJ (IRC § 1411)
- 1099-DA Box Mapping
- Spot ETFs Use Form 1099-B (Code W); Direct Spot Uses Form 1099-DA
- Statute of Limitations / Rev. Proc.
- 3 Yrs Standard (IRC § 6501(a)) · 6 Yrs >25% Omission · Rev. Proc. 2024-28
▸ Inspect 1200×675 CPA Statutory Workpaper Summary Card (Spot Bitcoin & Ethereum ETF Tax Guide: 109) WebP 1200×675
Spot Crypto (1099-DA) vs Spot ETF (1099-B + WHFIT) vs § 1256 Futures
IRS Statutory Rule: Spot Bitcoin & Ethereum ETF Tax Guide (2026) is governed in 2026 by IRS Rev. Proc. 2025-32 (0%/15%/20% long-term brackets plus 3.8% NIIT) and mandatory Form 1099-DA gross proceeds reporting.
Why Spot ETFs Issue Annual WHFIT Statements
Because a Grantor Trust holds physical BTC/ETH and sells tiny fractions each month to pay its 0.15%–0.25% sponsor fee, Treas. Reg. § 1.671-5 treats you as owning a pro-rata slice of the underlying coins. Your broker provides an annual WHFIT Tax Information Statement showing minor expense sales and cost-basis adjustments (no Schedule K-1 required!).
30-Day Wash Sale Disallowance Applies
Selling IBIT or ETHA at a loss and repurchasing shares (or call options) within 30 days before or after triggers a mandatory IRC § 1091 wash sale disallowance in Box 1g of Form 1099-B.
Regulated Futures & Listed Options
CME Bitcoin/Ether futures and certain CFTC/non-equity options qualify for 60% Long-Term / 40% Short-Term blended tax rates on Form 6781 regardless of holding period.
All 28 US Spot Bitcoin ETFs, Ethereum ETFs & Crypto Equities Tax Directory
IRS Statutory Rule: Spot Bitcoin & Ethereum ETF Tax Guide (2026) establishes the following verified 2026 benchmark values under “All 28 US Spot Bitcoin ETFs, Ethereum ETFs & Crypto Equ”: IBIT (iShares Bitcoin Trust ETF · 0.25%), FBTC (Fidelity Wise Origin Bitcoin Fund · 0.25%), BITB (Bitwise Bitcoin ETF · 0.20%).
| Ticker | Fund / Security Name | TER | IRS Tax Structure & Form | Wash Sale Rule |
|---|---|---|---|---|
| IBIT | iShares Bitcoin Trust ETF | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| FBTC | Fidelity Wise Origin Bitcoin Fund | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| BITB | Bitwise Bitcoin ETF | 0.20% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| ARKB | ARK 21Shares Bitcoin ETF | 0.21% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| BTC | Grayscale Bitcoin Mini Trust ETF | 0.15% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| HODL | VanEck Bitcoin ETF | 0.20% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| BRRR | CoinShares Valkyrie Bitcoin Fund | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| BTCO | Invesco Galaxy Bitcoin ETF | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| EZBC | Franklin Bitcoin ETF | 0.19% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| BTCW | WisdomTree Bitcoin Fund | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| GBTC | Grayscale Bitcoin Trust ETF | 1.50% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| ETHA | iShares Ethereum Trust ETF | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| FETH | Fidelity Ethereum Fund | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| ETHW | Bitwise Ethereum ETF | 0.20% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| CETH | 21Shares Core Ethereum ETF | 0.21% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| ETHV | VanEck Ethereum ETF | 0.20% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| QETH | Invesco Galaxy Ethereum ETF | 0.25% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| EZET | Franklin Ethereum ETF | 0.19% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| ETH | Grayscale Ethereum Mini Trust ETF | 0.15% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| ETHE | Grayscale Ethereum Trust ETF | 2.50% | Grantor Trust (1933 Securities Act) — Issues Form 1099-B + Annual WHFIT (Widely Held Fixed Investment Trust) Tax Information Statement (No Schedule K-1) | Subject to IRC § 1091 Wash Sale Rule (regulated exchange-traded s... |
| COIN | Coinbase Global, Inc. (Class A Common Stock) | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale (1099-DIV if dividends paid) | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
| MSTR | Strategy Inc. (formerly MicroStrategy Incorporated — Class A Common Stock) | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
| MARA | MARA Holdings, Inc. (formerly Marathon Digital Holdings, Inc.) | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
| RIOT | Riot Platforms, Inc. | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
| CLSK | CleanSpark, Inc. | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
| CORZ | Core Scientific, Inc. | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
| HOOD | Robinhood Markets, Inc. (Class A Common Stock) | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
| XYZ | Block, Inc. (formerly Square, Inc. — Ticker changed from SQ to XYZ in Jan 2025) | 0.00% | C-Corporation Common Stock — Issues Form 1099-B on sale | Subject to IRC § 1091 Wash Sale Rule (Corporate Equity Security)... |
Dominion & Control Rule
Scam & Pig-Butchering Relief
Date-of-Death Step-Up
2026 IRS Compliance Chain, Form 1099-DA Workflow & Disallowance Rules: Spot Bitcoin & Ethereum ETF Tax Guide (2026)
IRS Statutory Rule: Spot Bitcoin & Ethereum ETF Tax Guide (2026) is governed in the 2026 tax year by IRC §§ 1001, 1221, and 1222, IRS Notice 2014-21, Rev. Proc. 2024-28, and Rev. Proc. 2025-32, taxing short-term dispositions (≤ 365 days) at ordinary rates up to 37% and long-term gains (> 365 days) at 0%, 15%, or 20% plus the 3.8% Net Investment Income Tax (NIIT).
- Segregate Per-Wallet Cost Basis Pools (Rev. Proc. 2024-28): The taxpayer maintains separate FIFO or Specific-ID cost basis ledgers for each custodial broker and each self-custodied wallet address.
- Ingest Broker Form 1099-DA Statements: By February 15, custodial exchanges issue Form 1099-DA reporting gross proceeds (Box 1f) and covered cost basis for each digital asset sale or swap.
- Classify Ordinary Income vs. Capital Gains: Staking rewards, mining payouts, and airdrops are recorded on Schedule 1 / Schedule C at fair market value in USD at the exact timestamp of dominion and control.
- Populate IRS Form 8949 (Parts I & II): Dispositions are separated into Part I (Short-Term ≤ 365 days) and Part II (Long-Term > 365 days) using Checkboxes G, H, I (short-term) or J, K, L (long-term).
- Apply State Income Tax Conformity: Net capital gains flow from federal Schedule D to the taxpayer's state return (0% in AK, FL, NV, NH, SD, TN, TX, WA, WY vs. up to 13.3% in California).
- Answer the Form 1040 Digital Asset Question: The filer checks “Yes” or “No” on page 1 of Form 1040 and retains cryptographic transaction logs for the 3-to-6-year IRS statute of limitations (IRC § 6501).
Statutory Myth Debunked (Restriction): A tax-free crypto-to-crypto or BTC-to-USDT stablecoin swap under IRC § 1031 like-kind exchange rules does not exist: Congress restricted IRC § 1031 exclusively to real property under the Tax Cuts and Jobs Act, making every coin-to-coin trade, DeFi liquidity swap, and stablecoin conversion an immediately taxable disposition under IRC § 1001.
To model exact liabilities for Spot Bitcoin & Ethereum ETF Tax Guide (2026), run the 2026 federal and 50-state crypto capital gains tax calculator incorporating IRS Rev. Proc. 2025-32 brackets (0%, 15%, 20%) plus 3.8% NIIT (short-term vs long-term 365-day holding threshold), verify reporting codes in our interactive IRS Form 1099-DA box-by-box reconciliation guide under Treasury Decision 10000 (89 FR 56480) gross proceeds reporting (Form 8949 Part I and Part II adjustment codes), and review wallet-by-wallet cost basis allocation under Rev. Proc. 2024-28 (mandatory per-account FIFO/Specific ID tracking from January 1, 2026).
2026 IRS Form 1099-DA & 8949 Filing Readiness Tracker
0 / 4 Complete2026 IRS Rev. Proc. & State Tax Rate Dispatch
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Statutory Frequently Asked Questions & IRS Citations
IRS Statutory Rule: Spot Bitcoin & Ethereum ETF Tax Guide (2026) is governed in 2026 by IRS Rev. Proc. 2025-32 (0%/15%/20% long-term brackets plus 3.8% NIIT) and mandatory Form 1099-DA gross proceeds reporting.
Do I receive a Schedule K-1 for owning IBIT, FBTC, BITB, or ETHA?
No. All 11 US Spot Bitcoin ETFs and 9 Spot Ethereum ETFs are structured as Grantor Trusts (Widely Held Fixed Investment Trusts / WHFITs) under the Securities Act of 1933, not commodities partnerships. They issue standard Form 1099-B plus a supplemental WHFIT tax statement—never a Schedule K-1.
Why does the IRC § 1091 30-day Wash Sale Rule apply to Spot Bitcoin & Ethereum ETFs (IBIT, FBTC, ETHA) but not direct spot crypto?
Spot crypto ETFs (such as IBIT, FBTC, BITB, ARKB, and ETHA) are registered exchange-traded shares classified as 'stock or securities' under IRC § 1091. Selling an ETF at a loss and repurchasing the same or a substantially identical ETF within 30 days before or after the sale triggers a wash sale reported in Form 1099-B Box 1g, whereas direct spot BTC or ETH remains property outside § 1091.
Can I tax-loss harvest between direct spot Bitcoin (Form 1099-DA) and a Spot Bitcoin ETF (Form 1099-B)?
Many tax practitioners distinguish direct spot Bitcoin (non-security property reported on Form 1099-DA) from Grantor Trust ETF shares (securities reported on Form 1099-B), though conservative advisors recommend waiting 31 days or rotating between distinct underlying exposures when harvesting losses near year-end to avoid economic substance challenges under IRC § 7701(o).
What is a Grantor Trust Tax Information Statement WHFIT adjustment on Spot Crypto ETFs?
Because Spot Bitcoin and Ethereum ETFs are structured as Grantor Trusts under IRC § 671, the trust periodically sells fractional underlying coins to pay its annual sponsor expense ratio (e.g., 0.15%–0.25%). Shareholders must report their pro-rata share of those micro-sales and adjust share cost basis using the issuer's annual WHFIT Tax Information Statement.
How are IRC § 1256 Regulated Crypto Futures ETFs (BITO, BTF) taxed under the 60/40 rule?
Section 1256 regulated futures contracts are marked to market on December 31 and reported on IRS Form 6781. Regardless of how long you hold the contract, 60% of net gain or loss is taxed at Long-Term Capital Gains rates (max 20% + 3.8% NIIT) and 40% at Short-Term Ordinary rates (max 37% + 3.8% NIIT), producing a 30.6% top blended federal rate.
Do Spot Bitcoin ETFs held inside a Roth IRA, Traditional IRA, or 401(k) trigger Form 1099-B or WHFIT reporting?
No. Trades, rebalancing, and Grantor Trust expense sales inside a qualified retirement account (Roth IRA, Traditional IRA, Solo 401(k), or HSA) are sheltered from annual capital gains tax and do not generate Form 1099-B or Form 8949 filings.