Quick Facts:
- Analyst: PlanB, known for the Stock-to-Flow Bitcoin price model.
- Action: Transferred self-custodied Bitcoin into spot Bitcoin ETFs.
- Reason: To manage holdings more like traditional assets and avoid the complexities of private key management.
- Community Response: Mixed reactions, with discussions on security, convenience, and tax implications.
Renowned Bitcoin analyst PlanB has shifted his entire Bitcoin portfolio from self-custody to spot Bitcoin exchange-traded funds (ETFs), opting for a more traditional asset management approach. In a post on X dated February 15, PlanB shared his reasoning, stating, “I guess I am not a maxi anymore,” indicating a departure from the self-custody philosophy often championed by Bitcoin maximalists.
PlanB explained that he chose to move his Bitcoin into spot ETFs to manage his holdings more like equities or bonds, eliminating the complexities associated with self-custody. He added that avoiding the need to manage private keys brought him “peace of mind.”
The decision highlights a key trade-off in the crypto space: while self-custody offers control and independence, it also requires the owner to secure their private keys against hackers, thieves, and other potential threats. In contrast, spot ETFs provide a regulated and more familiar investment structure but rely on third-party custodians.
PlanB’s move has sparked conversations within the Bitcoin community, with some applauding his pragmatic approach while others question if this marks a shift away from Bitcoin’s core principle: “Not your keys, not your coins.”
Renowned Bitcoin critique, Peter Schiff commented:
“Just another example of Bitcoin not fulling its supposed purpose. It’s nothing more than a digital pyramid scheme, now resorting to political influence to force taxpayers into keep the scam going.”
Altcoin analyst FiatHawk, made a lengthy post reply, highlighting why PlanB’s decision was a bad one:
Balancing Security and Convenience
One major concern PlanB cited for his decision was asset security. While self-custody grants full control, it also comes with significant risks. According to onchain security firm Cyvers, crypto hackers stole over $2.3 billion in 2024 across 165 incidents, marking a 40% increase from 2023. This growing security threat has led many investors, including PlanB, to favor regulated ETF products that eliminate the risk of losing private keys.
PlanB’s move also sparked discussions on potential tax implications. Addressing concerns from the community, he clarified that his transfer to spot ETFs did not trigger taxable events due to his residency in the Netherlands, where realized capital gains are not taxed. Instead, the Dutch system imposes a wealth tax on unrealized gains, calculated as follows:
“Netherlands has no (realized) capital gains tax, so selling is not a tax event. We have unrealized capital gains tax (wealth tax): the government assumes you make ~6% return on your entire wealth (per Jan 1st) and you pay ~30% tax. So you pay ~2% of your entire net wealth, every year,” PlanB explained.
Both Bitcoin and it’s regulated product, Spot ETF’s have been performing very well since the turn of the new year, with the former seeing a new all-time high of $109k in January, and the later bringing in consecutive record breaking volumes into wall street.
