Trezor executive: Bitcoin going entirely into ETFs is the worst path, threatening the core principle of self-custody

The executive of hardware wallet manufacturer Trezor stated that the market's trend of fully pushing Bitcoin towards ETFization may pose a long-term risk to the core principles of the crypto industry. According to the company's Chief Business Officer Danny Sanders during the BTC Prague event, the current global number of crypto users is about 600 million, but only about 10% of users choose to self-custody their assets, with the number of users using hardware wallets being only about 12 to 13 million.

Since the launch of the U.S. spot Bitcoin ETF in 2024, which has attracted over $53 billion in inflows, the institutional allocation of Bitcoin has significantly increased. However, Sanders pointed out that this trend may also weaken users' behavior of directly holding private keys. He believes that self-custody is one of the core attributes of the Bitcoin system, but there are still significant challenges in terms of user experience and security thresholds, with more users still inclined to participate in the market through custodial tools such as exchanges or ETFs.

Sanders emphasized that the industry should focus on improving the usability and security of self-custody, rather than simply accepting the path of "putting Bitcoin into ETFs." He stated that if it evolves into a structure dominated by ETFs in the long term, it will undermine the foundational logic of Bitcoin as a decentralized asset, which could be the "least ideal outcome" for the industry.