On January 10, 2024, the United States Securities and Exchange Commission (SEC), after a decade of rejections and delays, approved 11 spot Bitcoin ETFs.

These ETFs enable brokerage customers to gain exposure to Bitcoin in traditional investment and retirement accounts while the ETF custodians handle the purchase and storage of Bitcoin behind the scenes. One particular demographic this unlocks are institutions which, for legal and compliance reasons, are often not able to easily custody Bitcoin themselves.

While the ETFs make exposure to Bitcoin's price more accessible, they miss the mark when it comes to the true innovation and value proposition of Bitcoin that comes with self-custody:

• Protection from counterparty risk vs. risk of being debanked or having accounts frozen
• 24/7/365 availability vs. only available during traditional banking hours
• International and mobile vs. tied to traditional financial markets in one jurisdiction
• Instant payments with final settlement vs. credit-based payments that can be disputed or default
• No or fixed holding cost vs. fees that compound year over year
• Decentralized and run by the people vs. centralized under the control of governments

If Bitcoin ETFs are the only vehicle you have to gain exposure to Bitcoin, buying the ETFs is better than sitting on the sidelines.

Otherwise, the benefits of owning Bitcoin directly and the financial self-sovereignty it brings can't be overstated.

If you'd like a trusted partner that can tailor guidance to your specific needs and guide you on your Bitcoin journey, schedule a call with us.