Expert declares the end of the era of self-storage of Bitcoin
The days of self-custody of cryptocurrencies are coming to an end, as major players increasingly favor ETFs, according to Martin Hisbeck, head of blockchain research at Uphold.
The real reason for all the whale movements out of self-custody is simple: taxes.
We are witnessing the first decline in self-custodied Bitcoin in 15 years.
BlackRock's iShares spot Bitcoin ETF (IBIT) has facilitated over $3 billion worth of Bitcoin conversions from whales.… pic.twitter.com/yepXRbLozM
— Dr Martin Hiesboeck (@MHiesboeck) October 22, 2025
The return to traditional financial instruments is facilitated by tax incentives and improved institutional infrastructure, as well as the ability to manage capital through consultants and gain access to a wider range of services, the expert believes.
“We are seeing the first decline in self-storage of Bitcoin in 15 years,” he added.
According to Hisbeck's calculations, BlackRock's IBIT exchange-traded fund facilitated the conversion of the first cryptocurrency by “whales” worth more than $3 billion. In total, American issuers absorbed coins worth $151 billion—approximately 6.8% of the issuance.
Source: SoSoValue.
The recent change in the US Securities and Exchange Commission's rules allowing in-kind redemptions of cryptocurrency ETFs has also accelerated the transition.
The innovation allows authorized participants to directly exchange cryptocurrency for fund shares, which is more efficient and potentially tax-effective than cash redemption.
“This trend indicates a deeper integration of Bitcoin into the traditional financial system and a shift away from the self-custody mantra of 'not your keys, not your coins.' It's another nail in the coffin of the original cryptocurrency idea,” Hisbeck emphasized.
Additionally, the development of cryptocurrency trading instruments is accelerating in other major jurisdictions such as the EU, UK, and Australia.
As a reminder, in October, the Hong Kong Securities and Futures Commission approved the region's first spot ETF based on Solana.
Source: cryptonews.net
