These are cash creates not in kind creates. So there is no escaping taxes. You will be paying capital gains just by holding spot Bitcoin ETFs Edit: after furth

These are cash creates not in kind creates. So there is no escaping taxes. You will be paying capital gains just by holding spot Bitcoin ETFs Edit: after further research it appears that the cash create mechanism doesn't cause a tax event for shareholders as it does with mutual funds. See https://www.grayscale.com/blog/legal-topics/addressing-potential-tax-considerations-for-investors-in-spot-bitcoin-etfs https://www.grayscale.com/blog/legal-topics/addressing-poten... We will have to see how every Bitcoin ETF is structured. YMMV depending on this structure and how you get taxed.