PlanB Ditches Private Keys: Bitcoin to ETFs

Bitcoin analyst and influencer PlanB recently made headlines by announcing that he has converted his Bitcoin holdings into ETFs. In a social media post, PlanB explained that managing Bitcoin through ETFs is simpler and less stressful than handling private keys, offering a more convenient solution for him.

“I have transferred my Bitcoin to ETFs,” PlanB said, acknowledging the common cryptocurrency saying, “not your keys, not your coins.” However, he explained that for him, using ETFs makes managing Bitcoin more similar to managing traditional assets like stocks and bonds.

The well-known analyst also expressed his surprise at the level of controversy surrounding the use of ETFs, stating, “I honestly didn’t know ETFs were so controversial. In my view, ETFs are a logical step in Bitcoin adoption, just as holding your own keys is.”

For PlanB, the shift from holding physical Bitcoin to using ETFs represents a practical evolution in how people can interact with Bitcoin as it becomes more mainstream. He believes that ETFs offer a less complex alternative while still enabling exposure to Bitcoin’s potential value. As Bitcoin continues to grow in popularity, he sees ETFs as part of its broader adoption—offering an easier, more manageable way for investors to engage with the asset without dealing with the complexities of private key storage.

When asked about how he was able to make this move without triggering a tax event, PlanB clarified the tax system in the Netherlands, where he resides. He explained that the country does not have a capital gains tax on realized profits. Instead, it has an unrealized capital gains tax, also referred to as a wealth tax, which assumes a standard 6% return on a person’s entire wealth. This means that, rather than taxing profits on specific assets, the government taxes a percentage of a person’s overall net wealth, which for PlanB amounts to about 2% annually.

This system, he noted, allows him to make transactions without the worry of paying taxes on any realized capital gains, as long as he does not sell his assets in a taxable event.