"Bitcoin investors increasingly prefer ETFs"

An analysis found that wealthy Bitcoin (BTC) holders are moving their assets into spot exchange-traded funds (ETFs). Some also say that the era of self-custody for Bitcoin is coming to an end.

On the 22nd (local time), Cointelegraph reported that Martin Hisboeck, head of blockchain and crypto research at Uphold, said, "As large Bitcoin wallets move into ETFs, the amount of self-custodied Bitcoin has turned to a decline for the first time in 15 years."

Hisboeck explained, "This change is due to the convenience and tax benefits of ETFs, and the environment in which large investors can manage assets within the established financial advisory system and use various services such as lending." He said the past cryptocurrency philosophy of 'Not your keys, not your coins' is gradually being replaced by an efficiency-oriented, institutional approach.

BlackRock's Bitcoin ETF, the iShares Bitcoin Trust (IBIT), is leading this trend. According to Bloomberg, Robbie Mitchnick, head of BlackRock's digital assets, said, "Early investors prefer to maintain Bitcoin price exposure through financial institutions rather than storing assets themselves." The amount of Bitcoin shifted through IBIT has already exceeded $3 billion.

The recent 'in-kind' structure for spot ETFs, approved by the U.S. Securities and Exchange Commission (SEC), is also accelerating this movement. The structure allows ETF participants to issue and redeem shares by directly exchanging Bitcoin, enabling them to avoid taxable transactions.