Bitcoin Maxi PlanB Shuns Self-Custody, Embraces Bitcoin ETFs
Dutch Bitcoin analyst PlanB, long a vocal proponent of Bitcoin ownership, has surprised the community by selling his personally held Bitcoin and investing in Bitcoin Spot ETFs.
PlanB’s Shift: Convenience Over Control
PlanB made the declaration on Twitter, stating, “I have transferred my bitcoin to ETFs.Yes, I know, not your keys, not your coins. But it is indeed just easier for me to manage bitcoin the same way as equities and bonds.Also, not having to hassle with keys gives me peace of mind.I guess I am not a maxi anymore.”
⚠️ Disclosure ⚠️
I have transferred my bitcoin to ETFs.
Yes I know, not your keys not your coins. But it is just easier for me to manage bitcoin the same way as equities and bonds. Also, not having to hassle with keys gives me peace of mind. I guess I am not a maxi anymore.
– PlanB (@100trillionUSD) February 15, 2025
This stance represents a departure for PlanB, a prominent figure in Bitcoin circles who for years advocated the principle of “not your keys, not your coins”. This adage underscores the importance of private keys, emphasizing that control over your assets lies solely with the individual who possesses them. Without private key ownership, one relies on a third party, such as a custodian or exchange, for access to their assets.
Why ETFs?
PlanB explained that his decision stemmed from a desire for simplicity, comparing Bitcoin management to traditional investments like stocks and bonds. Bitcoin ETFs provide this ease, eliminating the concerns surrounding security breaches, wallet loss, and the complexities of managing private keys. According to industry data, 2024 witnessed over 2 billion dollars worth of Bitcoin stolen, further highlighting the allure of the reduced risk profile offered by ETFs.
“I’ve decided to follow the crowd into ETFs,” PlanB admitted.
While PlanB’s actions may signal a shift towards broader adoption, especially among those prioritizing convenience, this move has ignited debate within the Bitcoin community.
Proponents of pure Bitcoin ownership, known as maximalists, stress the essential nature of private key control. While ETFs provide accessible entry points to Bitcoin exposure, they argue, relinquishing control compromises a core principle: individual sovereignty.
PlanB’s decision showcases the evolving dynamics within the crypto landscape,with increasing emphasis placed on user experience and accessibility.
Navigating Bitcoin Ownership: Choices and Considerations
PlanB’s experience presents valuable lessons for individuals contemplating their approach to Bitcoin ownership:
- Assess your risk tolerance: Are you agreeable managing private keys, understanding associated risks, or do you prioritize ease and custodial solutions?
- Understand key principles: Explore concepts like decentralized finance (DeFi) and non-custodial wallets to make informed decisions.
- Research your options: Explore ETFs alongside self-custody methods and weigh their pros and cons
PlanB Ditches Bitcoin for etfs, Sparking Debate
Renowned Bitcoin analyst PlanB recently made waves in the crypto community when he announced his decision to shift his Bitcoin holdings into Bitcoin ETFs. This move, which seemingly prioritizes convenience over potential cost savings, has ignited a fiery debate about the true essence of Bitcoin and it’s decentralized nature.
The ”Trust” Conundrum
PlanB’s reasoning centers on a fundamental dilemma: trusting oneself or trusting a third party. Dan Held, CIO of Yield App, succinctly captured this sentiment on Twitter, stating: ”It’s about the individual decision of having an asset in your control or not. Do you trust yourself or do you trust someone else?” This philosophy resonates deeply with some, who believe that self-custody is paramount to bitcoin’s ethos.
Bitcoin ETFs: A Matter of Convenience
Lucas Kiely, CIO of Yield App, has previously highlighted that the returns of a Bitcoin ETF, Bitcoin Futures ETFs, and direct Bitcoin possession are largely equivalent. The primary distinction lies in the management costs associated with ETFs.PlanB’s preference for etfs suggests that convenience might outweigh the potential for marginal cost savings.
A Mixed Bag of Reactions
PlanB’s decision received a diverse range of responses from his two million followers. Some lauded his pragmatism, while others expressed disappointment, perceiving it as a departure from Bitcoin’s core principles of decentralization and self-sovereignty.
PlanB himself seemed taken aback by the level of scrutiny,questioning weather the same criticism would apply if he had invested in microstrategy shares rather of an ETF.
Tax Implications in the Netherlands
The decision also sparked discussions regarding the technicalities of the move. In the Netherlands, unlike many other countries, there is no capital gains tax on realized price increases. Instead, a wealth tax applies, assuming an average 6% return on assets, with a 30% tax levied on that hypothetical profit.This effectively translates to approximately 2% annual tax on total assets, nonetheless of whether the underlying assets are bought or sold.
Therefore, the tax implications appear to be relatively neutral, as the Dutch tax system treats both physical and ETF-based Bitcoin holdings similarly.
A Call for Deeper Reflection
PlanB’s choice serves as a potent reminder of the ongoing debate surrounding Bitcoin and its role in the financial system. While some prioritize decentralized control, others find value in the accessibility and convenience offered by ETFs. Regardless of individual viewpoints, this event underscores the need for thoughtful consideration of the evolving ecosystem surrounding Bitcoin.
What are the potential implications of planb’s decision to move his Bitcoin holdings into ETFs for the future of Bitcoin and decentralized finance?
PlanB Ditches Bitcoin for ETFs, Sparking Debate
Renowned Bitcoin analyst PlanB recently made waves in the crypto community when he announced his decision to shift his Bitcoin holdings into Bitcoin ETFs. This move, which seemingly prioritizes convenience over potential cost savings, has ignited a fiery debate about the true essence of bitcoin and its decentralized nature. Today, we have the privilege of speaking with Lucas Kiely, Chief Investment Officer at Yield App, to delve deeper into this intriguing development.
An Unexpected Shift: PlanB and the Bitcoin ETF Pivot
archyde: Lucas, PlanB’s recent decision to move his Bitcoin holdings into ETFs has certainly generated a lot of buzz. What are your initial thoughts on this noteworthy shift?
Lucas Kiely: It’s indeed an interesting development. PlanB has long been a vocal advocate for self-custody and the core principles of Bitcoin. so, seeing him opt for the convenience of ETFs is a notable change that certainly sparks some interesting discussions within the community.
The “Trust” dilemma: convenience vs. Control
Archyde: What do you think lies at the heart of this decision? Is it purely about convenience, or are there deeper underlying factors at play?
Lucas Kiely: I believe it boils down to a fundamental question of trust. PlanB, like many Bitcoin maximalists, champions the idea of “not your keys, not your coins.” But, ETFs offer an alternative, a level of convenience where you don’t have to directly manage your private keys. This can be appealing to individuals who prioritize accessibility and a more conventional investment experience.
Bitcoin ETFs: A Game Changer?
Archyde: In your view, is PlanB’s move indicative of a broader trend towards increased adoption of Bitcoin ETFs?
Lucas Kiely: It’s certainly possible. We’re already seeing growing interest in Bitcoin ETFs, particularly from institutions and investors who are more risk-averse and prefer the regulatory oversight and familiarity of a traditional financial structure. PlanB’s decision could further legitimize ETFs and encourage more mainstream participation in the Bitcoin market.
The Ethical Quagmire: A Decentralized future?
archyde: Some argue that using ETFs compromises the decentralized nature of Bitcoin. how would you respond to this concern?
Lucas Kiely: That’s a valid point. Bitcoin was conceived as a decentralized alternative to traditional finance.When you use an ETF, you’re essentially trusting a third party to manage your assets. This introduces a layer of centralization that some purists might find objectionable. It’s a balance – easier access versus a potentially less decentralized future.
Archyde: Lucas, thank you for sharing your insights. This discussion certainly highlights the complexity and evolving nature of Bitcoin. For our readers, what are your parting thoughts on PlanB’s decision and its potential implications?
Lucas Kiely: I think PlanB’s move is a testament to the adaptability and growth of the Bitcoin space. It raises important questions about individual preferences, risk tolerance, and the future direction of decentralized finance. Ultimately, each individual must decide what role Bitcoin, and its various forms, play in their personal financial strategy.
