What I am failing to understand at the moment is how the coins will be transferred to holders of btc automatically? That doesnt make much sense to me right now and I hope somebody can clarify. For one I would get a small
amount of BTX but that is not my concern here it is simply how can they auto transfer those coins without BTC holders having BTX wallets?

They do it through creating a snapshot of the bitcoin blockchain, people can then claim through their private keys.