Your question is whether shares in an exchange-traded mutual fund that invests crypto currencies is itself a virtual currency.
I think the answer is pretty clearly no. You own shares in a regulated investment company. You don't own virtual currency. When you sell your ETF shares you'll have a capital gain or loss and receive a 1099-B. The IRS will track that. If for some reason the ETF liquidated and distributed to you its underlying assets, that would be different (and very unlikely).
The virtual currency questions are for buying/selling the actual cyrpto currencies that the IRS can't otherwise track.
See the 1040 instructions of this IRS FAQ
https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-curren...
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