Bitcoin analyst moves BTC holdings to ETF, sparks community reaction

Bitcoin analyst PlanB has revealed a new move related to his Bitcoin holdings, a move that has sparked wide reactions from the Bitcoin community. He mentioned in a post on X that he has moved his Bitcoin into spot Bitcoin exchange-traded funds (ETFs).

According to his post, the Bitcoin analyst mentioned that the aim of the move is to manage Bitcoin more traditionally, the same way stocks and bonds are managed. PlanB mentioned that he wanted to eliminate the hassles and complexities of having to hold his wallet keys. “I guess I am not a maxi anymore,” the Bitcoin analyst said on X (formerly known as Twitter).

The Bitcoin community did not find the post amusing, as they showed their displeasure. Most of them were worried about his statement about the keys, as they felt that the best way to keep their BTC safe was to be in charge of their keys.

Bitcoin analyst moves BTC stash into ETFs

According to his post, the Bitcoin analyst mentioned that not worrying over his wallet keys gives him peace of mind, a move that the Bitcoin community has frowned at. While Bitcoin holders, especially Maxis like PlanB have been in charge of their wallet keys, it has also given them the daunting task of having to keep the keys safe from hackers, thieves, and bad actors.

Private keys are like passwords to access one’s wallet, allowing the holder to be able to access their wallet when they wish. But the problem is keeping it safe from criminals and hackers. It is without a doubt that centralized exchanges provide the easiest avenue to store coins without the need to worry over your private key, however, the rate of crypto exchange hacks in the industry is discouraging users.

According to a December report shared by on-chain security firm Cyvers, hackers stole $2.3 billion in assets across 165 incidents, signifying a 40% increase from the previous year. In the report, the Blockchain security firm highlighted a disturbing trend, noting that most of the hacks were a result of access control breaches that happened on centralized exchanges and crypto custodians. It represented $1.9 billion of the entire hack, 81% of the total funds stolen.

Bitcoin community reacts to PlanB’s revelation

The news did not seem to go well with most of PlanB’s 2 million followers on X, with the revelations bringing a barrage of criticisms his way. Some users questioned the need to reveal such information, while others did not understand why he would advocate giving control of his assets to an online platform. He admitted that he did not know that Bitcoin ETFs were controversial.

Replying to a user who asked that he change his name to PlanETF, he mentioned that he sees Bitcoin ETFs as the next logical step to Bitcoin adoption. “In my view, ETFs are a logical step in Bitcoin adoption, next to holding your keys. Out of curiosity: 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 said.

A user asked if the transfer triggered a taxable event. PlanB mentioned that selling was not taxed since his tax residency is in the Netherlands, adding that there is no capital gains tax on realized gains. He noted that instead, there is an unrealized gains 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 added.

Despite his followers disagreeing with his move, there is a consensus in the market where returns from Bitcoin investments are the same. According to the Chief Investment Officer of Yield App, Lucas Kiely, the returns are the same, with the only difference being the management fees that ETF companies charge their users.

Meanwhile, Bitwise investment chief Matt Hougan has also tipped US spot Bitcoin ETFs to surpass $50 billion in inflows this year. “So far, so good: Spot Bitcoin ETFs pulled in $4.94 billion in January, which annualizes to ~$59 billion,” he said. In another post, Hougan and another Bitwise exec Ryan Rasmussen predicted that Bitcoin ETF inflows this year will be higher than 2024.

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