This is how crypto ETFs should be reported in 2025

Cryptocurrency ETFs (Exchange Traded Funds) have grown in popularity in Brazil. These funds allow investors to expose their portfolios to digital assets in a simplified and regulated manner, as they are traded on B3, the Brazilian Stock Exchange.

The opening of the deadline for filing the 2025 Personal Income Tax (IRPF), which runs until May 30, reinforces the importance of understanding how to declare these investment products correctly, especially given the specific rules for crypto assets.

ETFs can be a practical way to get started, especially for those who want to buy cryptocurrency with little money, as they avoid the need to manage private keys or deal directly with crypto brokers. However, the relationship with the tax authorities remains the same as with any other type of investment. You must declare your investment within the deadline and pay the appropriate taxes.

The crypto market in Brazil and preparation for declaring these assets

According to data released by B3, it is estimated that, in 2024, the number of investors with positions in cryptocurrency ETFs will have exceeded 400 thousand. In 2023, the International Monetary Fund (IMF) even pointed out Brazil as one of the countries with the highest number of cryptocurrency transactions in Latin America.

Despite the volatility and risks inherent to this type of asset, the possibility of diversifying one’s portfolio and seeking more attractive returns attracts different types of investors. The growing interest in crypto ETFs is also the result of a search for alternatives to direct investment in cryptocurrencies.

As a result, many investors prefer to acquire shares in a fund that replicates an index or tracks a basket of digital currencies, rather than buying specific assets. This gained traction in the national market in 2021, when the first ETFs of Bitcoin and other crypto assets were launched on the Brazilian stock exchange.

But to declare cryptocurrency ETFs in 2025, the first step indicated by the B3 guide is gather all documents and receipts relating to transactions carried out up to December 31, 2024. This includes brokerage notes, income reports and statements provided by brokers. It is essential to have detailed records of everything.

Mainly the date of purchase of the ETFs, number of shares acquired, purchase price and any sales and disposal value. This information can be found in the reports or statements of the brokerage firm where the ETF was traded. If the investor holds shares in several cryptocurrency ETFs, it is necessary to separate the data for each fund individually, to avoid inconsistencies when declaring.

Filing your tax return using the IRPF 2025 program

Information about cryptocurrency ETFs can be filled out in the “Assets and Rights” tab of the 2025 IRPF program. Within this section, simply select the group “07 – Funds” and then the code “08 – fixed income index funds (ETFs)”. Although cryptocurrencies are not, in themselves, fixed income, this categorization includes all index funds, including crypto funds.

In the description field, you must provide the full name of the fund, as well as the CNPJ of the administrator, the number of shares on December 31 of the previous year and the total amount spent on the purchase. If there was more than one acquisition, the total amounts must be added together, indicating the average cost of the shares.

The declaration of any gains obtained from crypto ETFs may vary depending on the form of income distribution, if any, and the sales made. Income may be classified as “taxable income” or “income subject to exclusive/definitive taxation”, depending on the characteristics of the fund and the guidelines of the administrator itself.

In general, ETFs that pay dividends usually have income tax withheld at source, according to current legislation. Sales that resulted in profits must be treated separately. As with other types of variable income, if the investor traded crypto ETF shares with capital gains, this profit must be taxed via Darf until the last business day of the month following the transaction.

However, unlike stocks, ETFs are not exempt from income tax for sales below R$20. Therefore, even if the sale was of a low value, the profit must be declared and the tax paid within the deadline. The rates applied to cryptocurrency ETFs follow the same logic as other index funds.

To operations considered common (buying and selling on different days), capital gains taxation is 15%. In the case of day trading (when the purchase and sale of shares occur on the same day), the rate rises to 20%. This rule also applies to crypto ETFs that are traded on the Brazilian stock exchange.