Hi Andrew, thank you for the comment! Would you be able to expand on why you think the number of taxable events is a large down side? We have not seen that there is a significant difference in taxation based on number of taxable events. Unless of course you are strictly holding without making any trades so you can take advantage of long term capital gains. In this case, however, you drastically increase your portfolio risk because you are locking up assets for a very long time. So, I would say HODLing won’t be worth it long term for many people.

Additionally, we have found that rebalancing significantly outperforms HODL on average. So, in these cases, even if you did end up paying more taxes. The 50% or even 150% more gains would definitely be worth it.

If you are concerned about the logistics of tracking and inputting all of the trades for tax purposes, we expect that most tax software will help automate the process. This should make reporting taxes much smoother in the future.

We would be more than happy to discuss any and all of your concerns, feedback, or questions. Please just let me know how we can help!

Thanks,

The Shrimpy Team