Trezor’s Chief Business Officer, Danny Sanders, stated that the full ETFization of Bitcoin could undermine self-custody—a core attribute—and represents the least desirable outcome for the industry. Currently, only about 10% of the world’s roughly 600 million crypto users opt for self-custody, with hardware wallet users numbering between 12 and 13 million. Since the launch of U.S. spot Bitcoin ETFs in 2024, over $53 billion in assets have flowed in, prompting more users to favor custodial solutions. The industry should prioritize improving the usability and security of self-custody rather than simply accepting the ETFization path for Bitcoin.
Trezor CBO Warns That Bitcoin ETFization Threatens Self-Custody Principles
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Summary
Trezor CBO Danny Sanders warned in Bitcoin news that the full ETFization of Bitcoin could undermine self-custody principles. He noted that only 10% of 600 million crypto users self-custody their assets, with hardware wallet users numbering between 12 and 13 million. The U.S. spot Bitcoin ETF, launched in 2024, has attracted over $530 billion in inflows. Sanders urged the industry to enhance the usability and security of self-custody rather than relying on ETFs.
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