Bitcoin Analyst PlanB Moves Holdings to Spot Bitcoin ETFs for Convenience and Peace of Mind

Bitcoin analyst PlanB has revealed that he has moved all of his self-custodied Bitcoin into spot Bitcoin exchange-traded funds (ETFs), citing the desire for a more manageable and secure way to handle his assets. This move marks a significant shift for the analyst, who had long been a vocal advocate for Bitcoin's decentralization and the importance of self-custody.

In a post on social media platform X on February 15, PlanB explained that he had chosen to store his Bitcoin in spot ETFs, comparing the process to managing traditional assets like equities and bonds, which do not require dealing with the complexities of private keys. "I guess I am not a maxi anymore," he wrote, acknowledging the shift away from his previous position as a Bitcoin maximalist, which often emphasizes the importance of holding Bitcoin in self-custody.

The Appeal of Convenience and Security

The primary reason behind PlanB’s decision to move his Bitcoin into ETFs is the convenience and peace of mind that comes with not having to manage private keys. "Not having to hassle with keys gives me peace of mind," PlanB shared, pointing to the security risks and logistical challenges associated with keeping private keys safe. While self-custody is a core tenet for many in the Bitcoin community, it also requires careful attention to avoid theft or loss, with hackers and bad actors posing constant threats.

Recent data highlights the growing risk of cyberattacks in the cryptocurrency space. In 2024 alone, over $2.3 billion worth of crypto assets were stolen through 165 incidents, marking a 40% increase from the previous year, according to on-chain security firm Cyvers. For many investors, the potential risk of losing access to their assets or falling victim to a hack has led some to consider alternatives like ETFs.

Mixed Reactions to the Move

PlanB's announcement sparked mixed reactions from his 2 million followers on X. While some expressed support, others raised questions about the ethics of moving Bitcoin into centralized financial products like ETFs. PlanB acknowledged the controversy, admitting that he hadn't realized Bitcoin ETFs would be so divisive within the community.

He further questioned whether his decision to invest in a Bitcoin ETF would be seen differently if he had chosen to purchase shares of companies like MicroStrategy instead. "Would it be different in your opinion if I would have bought (Micro)Strategy instead of an ETF, or would that be equally evil?" he asked.

Some followers also questioned whether the transfer of Bitcoin into ETFs would trigger a taxable event. However, PlanB clarified that, as a resident of the Netherlands, he is not subject to capital gains tax on realized gains. Instead, the country has an unrealized capital gains tax, or "wealth tax," which taxes individuals based on assumed returns on their total wealth. In PlanB’s case, the government assumes a 6% return on his assets, and he pays approximately 2% of his net wealth annually in taxes.

Bitcoin ETFs Set to Attract Significant Inflows in 2025

The growing interest in Bitcoin ETFs is reflected in recent predictions about the influx of capital into these products. According to Matt Hougan, chief investment officer at Bitwise, U.S. spot Bitcoin ETFs could see over $50 billion in inflows in 2025. In January, spot Bitcoin ETFs already pulled in nearly $5 billion, which, if maintained, would annualize to around $59 billion for the year.

Hougan and Ryan Rasmussen, Bitwise’s head of research, have also forecasted that Bitcoin ETF inflows in 2025 will surpass those of 2024, signaling increasing institutional and retail interest in Bitcoin exposure through regulated financial products.

Conclusion: A Major Shift for Bitcoin Ownership

PlanB’s decision to move his Bitcoin holdings into spot Bitcoin ETFs represents a notable shift in the way some investors are approaching the asset. While the move may be seen by some as a departure from Bitcoin's original ethos of self-custody and decentralization, it highlights the evolving dynamics of the market, where convenience, security, and institutional adoption play increasingly important roles.

As Bitcoin ETFs continue to gain traction and capital inflows grow, it will be interesting to see how the broader crypto community responds to this shift and whether it signals a larger trend of institutional and retail investors moving their assets into regulated financial products.