Bitcoin analyst PlanB has transferred his entire Bitcoin holdings from self-custody into spot Bitcoin exchange-traded funds (ETFs) to simplify managing his assets like traditional investments.
In a Feb. 15 post on X, PlanB shared that his decision to shift to spot Bitcoin ETFs stems from the desire to handle his Bitcoin similarly to equities and bonds, avoiding the complexities of managing private keys.
“Not dealing with keys gives me peace of mind,” he stated. While Bitcoin maximalists advocate for keeping control over private keys, self-custody requires users to secure those keys against potential threats from hackers and thieves.
In 2024, hackers stole over $2.3 billion in crypto assets across 165 incidents, marking a significant rise from 2023, according to Cyvers.
Lucas Kiely, chief investment officer at Yield App, mentioned that spot Bitcoin ETFs, future ETFs, and direct Bitcoin investments are largely similar in terms of returns, with the key difference being the management fees tied to ETFs.
PlanB’s move drew mixed reactions from his 2 million followers on X, with some expressing surprise at the controversy surrounding Bitcoin ETFs. He expressed curiosity about how opinions might differ if he had invested in MicroStrategy instead of an ETF, questioning whether that would have been seen in the same light.
Regarding taxes, PlanB explained that in the Netherlands, where he resides, capital gains from Bitcoin sales aren’t taxable, but there is a wealth tax on unrealized gains. He noted that the government assumes a 6% return on his wealth annually, which is taxed at around 30%, leading to a tax of roughly 2% of his total wealth each year.
According to Matt Hougan, Bitwise’s investment chief, US spot Bitcoin ETFs are poised to see over $50 billion in inflows in 2025. In January, these ETFs pulled in $4.94 billion, putting them on track for an annualized inflow of around $59 billion.
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