- Bitcoin analyst PlanB shifted all his BTC holdings from self-custody to spot ETFs, signaling a major investment shift.
- Based in the Netherlands, he avoids capital gains tax and instead pays an annual wealth tax.
- Some applaud his practicality, while others criticize him for straying from Bitcoin’s decentralized principles.
Bitcoin analyst PlanB revealed that he has switched all his BTC assets from self-custody to spot Bitcoin exchange-traded funds (ETFs). This is a radical departure from how he has kept his BTC assets in the past since he now desires to hold them like other conventional assets like equities and bonds.
PlanB, whose popular Stock-to-Flow model has found broad application in Bitcoin price prediction, took to X (formerly Twitter) on Feb. 15 to declare that he was dropping that maxi label of maxi, claiming, “Guess I am not a maxi anymore.” This statement alludes to a departure from that hard-line maxi strategy that centers on self-custody — that is, to have ownership of one’s own private keys in place of reliance on third-party websites.
As per PlanB, it was motivated by ease of mind and convenience. “It gives me peace of mind not having to mess around with keys,” he expressed. As much as BTC maximalists hold that possession of private keys is required to maintain financial autonomy and safety, PlanB’s action hints at a growing tendency for investors to demand ease of administration and reduced human error risks that go with self-custody.
PlanB Switches to Spot Bitcoin ETFs for Security
Self-custody entails precise management of secret keys that, if hacked or lost, result in irrevocable loss of funds. Shocking statistics show that in 2024, crypto hackers stole over $2.3 billion in 165 attacks alone—a staggering 40% more than in 2023, on-chain security firm Cyvers reported.
PlanB’s investment in spot Bitcoin ETFs also minimizes these risks, as ETFs have custodial protection by established finance companies with good protection mechanisms in place. By doing so, he invests in BTC as much as he would in conventional stocks but does not have to handle private keys.
Yield App Chief Investment Officer Lucas Kiely opined in February of 2024 that future ETFs, spot Bitcoin ETFs, and investing in BTC directly are all the same but only differing in management fees. This would mean that Plan B’s move has more to do with ease of implementation and reducing risks than with changing his outlook on Bitcoin’s valuation in some manner.
PlanB Avoids Capital Gains Tax on Bitcoin
Interestingly, PlanB stated that the move didn’t trigger a taxable event as he is not subject to taxation of realized gains based on the Netherlands’ taxation rules for residency status. Instead, he has to endure an unrealized taxation of capital gains that is colloquially known as a wealth tax. “Government assumes that you receive ~6% on all of your wealth (as of Jan 1st) and must give ~30% to them. Essentially, you give ~2% of your net wealth annually,” PlanB elaborated.
This strategic move allows him to optimize his tax obligations while continuing to benefit from Bitcoin’s price appreciation through ETFs.
PlanB’s move is at a time that has witnessed the global adoption of Bitcoin ETFs surge. At the United States level, Bitwise’s Chief Investment Officer Matt Hougan recently predicted that spot Bitcoin ETFs would see over $50 billion in inflows annually. “So far so good: Spot Bitcoin ETFs have taken in $4.94 billion in January alone, annualizing to ~$59 billion,” wrote Hougan on February 11.
These statistics reflect greater acceptance of Bitcoin ETFs as a mass investment tool that captures retail and institutional investor demand for exposure to BTC but not having to manage their own custodial arrangements.
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