Bitcoin analyst PlanB has disclosed that he has transferred all his Bitcoin from self-custody to spot Bitcoin exchange-traded funds (ETFs), aiming to monitor his Bitcoin like more traditional assets.
“I suppose I am no longer a maxi,” PlanB remarked in a post on X on February 15, elaborating that he relocated his Bitcoin BTCUSD into spot Bitcoin ETFs to manage his portfolio akin to equities and bonds, thereby avoiding the intricacies of self-custody.
Analyst states that lack of wallet keys offers “peace of mind”
“Eliminating the hassle of managing keys brings me peace of mind,” he noted. While Bitcoin maximalists advocate for users to always control their private keys rather than holding their Bitcoin on centralized exchanges, self-custody carries the responsibility of safeguarding those keys against hackers, thieves, and other malicious entities.
In 2024, cryptocurrency hackers pilfered over $2.3 billion in assets across 165 incidents, marking a 40% rise compared to 2023, as reported by on-chain security firm Cyvers.
Lucas Kiely, chief investment officer at Yield App, informed Cointelegraph in February 2024 that, from a returns standpoint, spot Bitcoin ETFs, futures ETFs, and direct Bitcoin investments are “essentially identical,” with the only distinction being the management fees linked to the ETFs.
Following the announcement, PlanB received mixed responses from his 2 million followers on X. He confessed to being unaware of the contentious nature surrounding Bitcoin ETFs.
“In my perspective, ETFs represent a rational progression in Bitcoin adoption, alongside holding your own keys. Out of curiosity: would it be perceived differently in your view if I had invested in (Micro)Strategy instead of an ETF, or would that be equally wrong?” he questioned.
Some users raised concerns about whether the transfer would result in a taxable event.
Bitcoin ETFs projected to see $50B in inflows by 2025
PlanB clarified that for him, selling doesn’t incur taxes due to his residency in the Netherlands, which does not impose capital gains tax on realized gains.
However, there is an unrealized capital gains tax, often termed a wealth tax. “The government presumes you earn approximately 6% returns on your entire wealth (as of January 1st), and you pay around 30% tax. Thus, you contribute about 2% of your total net wealth each year,” he explained.
Bitwise’s chief investment officer, Matt Hougan, indicated that US spot Bitcoin ETFs could potentially witness over $50 billion in inflows this year.
“So far, so good: Spot Bitcoin ETFs attracted $4.94 billion in January, which annualizes to approximately $59 billion,” Hougan stated on February 11.
In December, both Hougan and Bitwise’s head of research, Ryan Rasmussen, forecasted that Bitcoin ETF inflows in 2025 would exceed those of 2024.
