RetireJapan

As I'm sure we've all seen the long lauded approval for bitcoin ETF's was granted this morning.

Personally, I am not a believer in Crypto but also think it is probably prudent to have some exposure in the space, just incase I'm wrong and this thing does go "to the moon" (ffs).

Buying Crypto outright had never appealed as someone who believes heading to zero is the most likely outcome - however - buying an ETF that, if I'm correct, can be used to offset taxes due on profts from other share sales seems like it might be a very sensible hedging strategy for a crypto bear.

I just want to make sure I'm not missing something here, and that the Japanese trading platforms / tax autlorities will allow me to tax-offset my losses from my Bitcoin ETF hedging plan? Anyone else had any thoughts on this?

Being able to buy this in a 特定口座 so that I don't have to deal with crypto taxes manually would be another great benefit. Let's see if this becomes accessible in Japan soon.

I gather that crypto profits are taxed in Japan as miscellaneous income, and unlike other financial instruments (futures, stocks) that means you could pay a higher tax rate on any crypto capital gains.

So if the ETF works as an instrument, that might be a better way to play, unless you want the actual crypto.

(My assumption is also that if your broker would offer the ETF it should be applicable like other ETFs in your taxable account)

There is also individual stocks like Coinbase… i am not big on cryptocurrency myself at all, but buying something like that after the next crypto crash might be interesting.

I like this take from Molly White.
(edit: sorry for huge image, posted from phone)