Trezor CCO Says Rising Bitcoin ETF Reliance Could Hurt Crypto Industry
Summary
- Trezor CCO Danny Sanders said growing reliance on Bitcoin (BTC) ETFs among investors could hurt the crypto industry.
- He said there are about 600 million crypto users worldwide, but only about 10%% use Self-Custody, and just 12 million to 13 million use hardware wallets.
- Sanders said the industry should expand Self-Custody by providing a better user experience, educational tools and backup systems instead of reinforcing dependence on custodians, and stressed that the view that investors can "just buy an ETF" would be the worst possible outcome.
Forecast Trend Report by Period
Danny Sanders, chief customer officer at crypto hardware wallet maker Trezor, said growing reliance on exchange-traded funds among Bitcoin (BTC) investors could harm the crypto industry.
The Block reported on June 15 that Sanders told a Bitcoin event in Prague that self-custody can be burdensome for newer investors because it requires them to manage their Bitcoin directly instead of leaving it with an exchange or custodian.
Global crypto users number about 600 million, but only about 10% use Self-Custody, he said. Of those, just 12 million to 13 million use hardware wallets.
The industry should help investors choose self-custody by offering a better user experience, educational tools and backup systems, rather than steering them toward custodians, Sanders added.
"The idea that you can just buy an ETF is the biggest challenge the industry needs to overcome," he said. "Personally, I think that is the worst possible outcome for the industry."
Sanders said one of Bitcoin's core values is that individuals can control their assets directly. He warned that if ETF-centered investing becomes more widespread, it could weaken Bitcoin's decentralized philosophy.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
