Acts as a phosphoinositide 5- and phosphoinositide 6-phosphatase and regulates cellular levels of inositol pentakisphosphate (InsP5) and inositol hexakisphosphate (InsP6) (PubMed:26628373). Also acts as a 2,3-bisphosphoglycerate 3-phosphatase, by mediating the dephosphorylation of 2,3-bisphosphoglycerate (2,3-BPG) to produce phospho-D-glycerate without formation of 3-phosphoglycerate (By similarity). Has a role in embryonic tracheal development where it localizes to the leading edge of actively migrating branches (PubMed:26628373). In these leading cells, enhances formation and/or maintenance of filopodia which may drive branch migration and elongation by cell-cell intercalation (PubMed:26628373). The function in tracheal morphogenesis is dependent on its inositol polyphosphate phosphatase activity (PubMed:26628373). (2R)-2,3-bisphosphoglycerate + H2O = (2R)-2-phosphoglycerate + phosphate myo-inositol hexakisphosphate + H2O = myo-inositol pentakisphosphate (mixed isomers) + phosphate. Has a dynamic localization pattern during tracheal development. During early tracheal invagination (embryonic stage 10), localizes mainly to the apical cell membrane. During the primary tracheal branching stage (embryonic stage 11), found mainly at the basolateral cell membrane. At later stages (embryonic stage 13-15), also localizes to cell-cell junctions and filopodia. During embryonic stage 10-12, expressed throughout the tracheal primordia. At stages 13-15, expression is lost from the tracheal dorsal trunks (DTs) but is maintained in branches still undergoing active elongation and migration: the dorsal branches (DBs), visceral branches (VBs), lateral trunk branches (LTs) and ganglionic branches (GBs). Notably, expression is enriched at regions of filopodia formation such as the distal tips of the DBs, LTs and GBs. Up-regulated by FGF signaling in the developing trachea. N-glycosylated. Tracheal morphology is grossly normal although some defects are observed. Dorsal trunks (DTs) are significantly elongated, and dorsal branches (DBs) frequently fail to fuse with their contralateral partner. Filopodia number in DBs is reduced. Belongs to the histidine acid phosphatase family. MINPP1 subfamily. Truncated N-terminus.