Bitcoin futures contracts started trading on the Chicago Board of Exchange (CBoE) on December 10, 2017 and on the Chicago Mercantile Exchange (CME) on December 18, 2017. Other exchanges may also begin trading of similar contracts in 2018.
As the market response to these contracts suggests, trading in Bitcoin futures has changed the cryptocurrency market. From a tax perspective, these contracts raise considerations that are unique within the cryptocurrency ecosystem. Understanding the complex tax issues may provide opportunities for direct and indirect investors.
Trading in Bitcoin futures presents exciting opportunities for investors—both from a trading and tax perspective. The complexities around the tax treatment should be considered before entering into these transactions.
Asset Management Tax Leader, PwC US