PlanB shifts to ETF as $2.3B crypto theft sparks Bitcoin move

PlanB, a prominent Bitcoin (CRYPTO:BTC) analyst, has revealed that he transferred his entire Bitcoin holdings from self-custody to spot Bitcoin ETFs, aiming to manage his assets similarly to traditional investments.

This decision reflects a move away from the Bitcoin maximalist ideology, as PlanB stated, "I guess I am not a maxi anymore."

PlanB cited ease of management and "peace of mind" as primary motivations, highlighting the complexities and risks associated with self-custody, such as managing private keys.

"Not having to hassle with keys gives me peace of mind," he explained.

This decision comes amid rising concerns over crypto security, with over $2.3 billion in assets stolen by hackers in 2024 across 165 incidents, marking a 40% increase compared to 2023, according to onchain security firm Cyvers.

The move sparked mixed reactions from PlanB's 2 million followers on X.

Some questioned whether the transfer would trigger a taxable event, while others supported the decision.

PlanB clarified that, under the Netherlands' tax system, he faces an annual wealth tax of approximately 2% on presumed returns rather than capital gains tax on realized profits.

Despite the controversy, PlanB defends ETFs as "a logical step in Bitcoin adoption," questioning whether investing in MicroStrategy would be viewed differently.

Bitwise investment chief Matt Hougan anticipates U.S. spot Bitcoin ETFs could see over $50 billion in inflows this year.

Lucas Kiely, chief investment officer of Yield App, noted that the returns from spot Bitcoin ETFs, future ETFs, and direct Bitcoin investments are "essentially the same thing," with the primary difference being the management fees.

At the time of reporting, the Bitcoin (BTC) price was $96,163.07.