In an interesting move, PlanB, a Bitcoin analyst, announced transferring all his Bitcoins from personal wallets to ETF funds for easier asset management and to eliminate the complexities associated with private keys. Extreme Bitcoin supporters believe users should always control their private keys, but personal asset holding comes with risks like hacking and theft. According to Cyvers security company’s report, hackers stole over $2.3 billion in digital assets in 2024, showing a 40% increase from the previous year. Lucas Kiely, Yield App’s investment manager, stated in February 2024 that there is no significant difference in returns between spot ETFs, futures ETFs, and direct Bitcoin investments, with the main difference lying in management fees. PlanB’s decision received mixed reactions from his 2 million followers. He asked if buying MicroStrategy company shares instead of ETFs would elicit similar reactions. Some users also inquired about the tax implications of this transfer. PlanB explained that in the Netherlands, wealth tax is imposed, and individuals pay around 2% of their total wealth to the government. Meanwhile, Matt Hougan, Bitwise’s investment manager, predicted that spot Bitcoin ETFs would attract over $50 billion in capital this year. It’s worth noting that in January 2024, these funds attracted $4.94 billion, which is expected to reach $59 billion annually if the trend continues. It is also projected that the investment in Bitcoin ETFs in 2025 will surpass even 2024’s levels.
