Bitcoin Analyst PlanB Has Disclosed That He Has Transferred All His Bitcoin From Self-Custody to Spot Bitcoin Exchange-Traded Funds (ETFs)

Bitcoin maximalists advocate for users to always control their private keys rather than holding their Bitcoin on centralized exchanges

Bitcoin analyst PlanB has disclosed that he has shifted all his Bitcoin from self-custody to spot Bitcoin exchange-traded funds (ETFs), aiming to monitor his Bitcoin like more traditional assets.

“I guess I am no longer a maxi,” PlanB wrote in a post on X on February 15, adding that he moved his Bitcoin BTCUSD into spot Bitcoin ETFs to manage his portfolio like equities and bonds, avoiding the complexities of self-custody.

Analyst says lack of wallet keys provides “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 keeping their Bitcoin on centralized exchanges, self-custody comes with the responsibility of protecting those keys from hackers, thieves and other malicious parties.

In 2024, crypto hackers stole over $2.3 billion in assets across 165 incidents, marking a 40% increase compared to 2023, as reported by on-chain security firm Cyvers.

Speaking to Cointelegraph in February 2024, Yield App chief investment officer Lucas Kiely noted that from a returns perspective, spot Bitcoin ETFs, futures ETFs and direct Bitcoin investments are “essentially identical,” with the only difference being the management fees associated with the ETFs.

Following the announcement, PlanB received mixed responses from his 2 million followers on X. He admitted that he was not aware of the contentious nature surrounding Bitcoin ETFs.

“In my mind, ETFs are a logical progression in Bitcoin adoption, next to 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 asked.

Some users also expressed concerns about whether the transfer would trigger a taxable event.

Bitcoin ETFs set to see $50B in inflows by 2025

However, 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.

There is, however, an unrealized capital gains tax, often referred to as a wealth tax. “The government assumes you earn around 6% returns on your total net wealth (as of January 1st), and you pay around 30% tax. So you contribute about 2% of your total net wealth each year,” he explained.

Bitwise chief investment officer Matt Hougan has suggested that U.S. spot Bitcoin ETFs could potentially witness over $50 billion in inflows this year.

“Year-to-date: Spot Bitcoin ETFs attracted $4.94 billion in January, which annualizes to about $59 billion,” Hougan wrote on February 11.

In December, both Hougan and Bitwise head of research Ryan Rasmussen predicted that Bitcoin ETF inflows in 2025 are likely to surpass those of 2024.