What are the tax implications of investing in a crypto spot ETF?

Crypto spot ETFs are treated like traditional investments for tax purposes in most countries. In the US, they're taxed as either ordinary income or capital gains depending on your holding period—short-term (under 1 year) is taxed as ordinary income at your regular rate, while long-term gains (over 1 year) receive preferential rates, typically 15-20%. You must report gains when you sell shares, not when the ETF's holdings change. Unlike direct crypto ownership, spot ETFs don't trigger taxable events for internal rebalancing. However, dividend distributions, if any, are taxable. Keep detailed records of purchase dates and prices for accurate reporting. Tax laws vary significantly by country, so consult a tax professional for jurisdiction-specific guidance.