Bitcoin Pioneer PlanB Ditches Self-Custody for ETFs Amid Hacking Surge
1min read Bitcoin analyst PlanB has announced a significant shift in his investment strategy, moving his entire Bitcoin holdings from self-custody to spot Bitcoin exchange-traded funds (ETFs). This decision reflects a growing trend among crypto investors who are increasingly prioritizing security and ease of management over traditional self-custody practices.
PlanB's move comes amidst rising security concerns in the cryptocurrency realm. According to data from onchain security firm Cyvers, crypto hackers siphoned off more than $2.3 billion in assets through 165 incidents in 2024 alone, reflecting a staggering 40% increase compared to the previous year. The increasing prevalence of hacking incidents is prompting even die-hard Bitcoin proponents to rethink their strategies.
In a recent statement, PlanB remarked, "Not having to hassle with keys gives me peace of mind," emphasizing the advantages of decentralized finance tools. By opting for ETFs, PlanB aims to manage his assets similarly to conventional investments in stocks and bonds, thereby eliminating the complexities and risks associated with holding private keys.
Estimates suggest that 2025 could witness an influx of over $50 billion into US spot Bitcoin ETFs. In a statement, Matt Hougan, Chief Investment Officer at Bitwise, indicated that current trends are promising, with $4.94 billion being pulled in just January, putting the total annualized inflow rate at approximately $59 billion. As more investors seek the security and simplicity offered by ETFs, the potential for rapid growth is clear.
Amid discussions about his asset management strategy, PlanB clarified his tax position, noting that selling does not trigger a taxable event for him due to his residency in the Netherlands, which lacks capital gains tax on realized profits. Instead, he pays an unrealized capital gains tax, which translates to approximately 2% of his net worth each year. This distinction is crucial as it highlights the varying implications that tax structures can have on investment choices.
The decision to transition to Bitcoin ETFs has sparked mixed reactions on social media, with some users questioning whether such a transfer might trigger a taxable event. PlanB’s revelation has brought to light the controversial nature of ETFs in the cryptocurrency space. While many believe ETFs significantly enhance Bitcoin’s legitimacy and attractiveness to institutional investors, others remain concerned about the compromises
