Fidelity Bitcoin ETF Tops Search Charts and Holds $12B, Triggers Income Tax
FBTC•Spot Bitcoin ETF FBTC holds $12 billion of Bitcoin but imposes mandatory in-kind distributions taxed as ordinary income, a cost many investors may not anticipate. Crypto-focused ETFs dominated investor fund flow searches last month, with FBTC ranking among the most-searched tickers on the platform.
1. Fund Holds $12 Billion in Bitcoin
FBTC has amassed $12 billion of bitcoin in its portfolio since launch, making it one of the largest spot bitcoin ETFs by assets under management and a key vehicle for institutional and retail investors seeking regulated BTC exposure.
2. Mandatory Distributions and Tax Treatment
FBTC’s structure triggers forced in-kind or cash distributions that investors must report as ordinary income, potentially raising annual tax liabilities significantly compared with traditional ETF capital gains treatment.
3. Surge in Investor Interest on Fund Flow Platform
Over the four weeks ending May 26, FBTC ranked among the most-searched crypto ETFs on a major fund flow analysis tool, reflecting heightened investor monitoring of its early inflows and overall momentum in the spot crypto ETF category.
