Bitcoin ETF Boom Sparks Self-Custody Concerns

Trezor Chief Commercial Officer Danny Sanders expressed concerns that the increasing adoption of spot Bitcoin (BTC) exchange-traded funds (ETFs) could erode self-custody practices and undermine a core principle of Bitcoin.

The products have driven much of Bitcoin's price action since launching in the United States in early 2024, with investors moving over $53 billion into spot BTC ETFs.

Sanders argued that relying on ETFs over private keys would harm the industry and that the process of self-custody is not as difficult as it first appears, with a psychological barrier being the main obstacle.

The industry counts roughly 600 million users, yet only about 10% hold their own assets, and of those, just 12-13 million rely on hardware wallets, which are generally regarded as the most secure way to store private keys.