Bitcoin analyst PlanB announced that he has shifted all his Bitcoin from self-custody into spot Bitcoin exchange-traded funds (ETFs) to handle his Bitcoin similarly to traditional assets.
“I suppose I’m not a maxi anymore,” PlanB stated in a post on X on February 15, clarifying that he transferred his Bitcoin (BTC) into spot Bitcoin ETFs to manage his assets more like stocks and bonds — without the intricacies of self-custody.
Analyst claims no wallet keys bring “peace of mind”
“Avoiding the hassle of managing keys provides me with peace of mind,” he remarked. While Bitcoin maximalists emphasize that users should always maintain control over their private keys instead of using centralized exchanges, self-custody entails the responsibility of safeguarding those keys against hackers, thieves, and other malicious entities.
Source: PlanB
In 2024, crypto hackers stole more than $2.3 billion in assets across 165 incidents, representing a 40% rise compared to 2023, as reported by on-chain security firm Cyvers.
Lucas Kiely, chief investment officer of Yield App, informed Cointelegraph in February 2024 that from a returns standpoint, spot Bitcoin ETFs, future ETFs, and direct Bitcoin investments are “essentially the same” except for the management fees tied to the ETFs.
PlanB received a mixed response from his 2 million followers on X following the news. He acknowledged that he was unaware of the controversy surrounding Bitcoin ETFs.
“In my opinion, ETFs are a sensible progression in Bitcoin adoption, alongside holding your own keys. By the way, would your perspective change if I bought (Micro)Strategy instead of an ETF, or would that be regarded as equally wrong?,” he questioned.
Some individuals raised concerns about whether the transfer would result in a taxable event.
Bitcoin ETFs anticipated to see $50B in inflows in 2025
PlanB remarked that selling isn’t taxable for him, as his tax residency is in the Netherlands, which does not impose capital gains tax on realized profits.
Instead, a tax on unrealized capital gains, commonly referred to as a wealth tax, is in effect. “The government presumes you earn approximately 6% return on your total wealth (as of January 1st) and you pay roughly 30% tax. Thus, you end up paying about 2% of your entire net wealth annually,” he explained.
Related: Bitcoin traders anxious after $651M in spot BTC ETF outflows — Is a price drop imminent?
Bitwise investment chief Matt Hougan indicated that US spot Bitcoin ETFs could be poised for over $50 billion in inflows this year.
“So far, so good: Spot Bitcoin ETFs attracted $4.94 billion in January, which projects to approximately $59 billion for the year,” Hougan wrote on February 11.
In December, Hougan and Ryan Rasmussen, Bitwise’s head of research, predicted that inflows into Bitcoin ETFs in 2025 would exceed those of 2024.
Magazine: South Korea to lift corporate crypto ban, beware of crypto mining HDDs: Asia Express
