Should you hold Bitcoin ETFs or Bitcoin in cold storage?

[@jeffdelaughter9508]

I dont always comment. But i am very grateful for the work you do and the voice you provide to educate those who will be lost without BTC

[@rajatsonifinance]

🤝🏼

[@johnedwards1801]

Appreciate the insight. I am an ETF mostly. Main reason is most of my money is in a retirement account and the ETFs are easy to purchase. I will accept custody risk because I am more afraid of a hardware failure on a digital wallet.

[@rajatsonifinance]

Reasonable. I'd also build a cold storage stack

[@jacquesjourney]

@@rajatsonifinance whats a cold storage stack?

[@cragzrogers5157]

Multiple hoders,as in several different types off trezors​@@jacquesjourney

[@ryanblack1775]

@@jacquesjourney he's just saying to own some in cold storage. stack = stockpile.

[@jacquesjourney]

@ryanblack1775 thanks, I have the ETF & BTC

[@callitlikeiseeit2414]

Long time investor , wouldn’t have made the jump into crypto without an ETF offering . All I’m saying is it opened Bitcoin up to people like me that liked the idea but had a mental hurdle to overcome regarding self storage , keys , coin base etc …

[@rajatsonifinance]

For sure!

[@Ben-uf3st]

I had cold storage (will never forget my seed phrase, etc.). Wife and I ultimately couldn't agree on self custody, so we converted everything to ETFs.

[@henryjao-ti7cv]

thanks for making great content everyday

[@onlyonerombo]

Great clear explanation. Thank you Rajat 😊

[@wolfpack3914]

IBIT is accessible, safe, liquid, inexpensive to store and has zero transaction fees. It can also be held in tax advantaged accounts. I imagine in the future you may cash shares out for btc rather than cash. If society crashes to where etf shares don’t stand, we have bigger problems than cold storage can likely handle… It’s probably best to have IBIT shares and cold storage mix

[@roberta.transparentliving9757]

I personally have both 📢💎🖐ing💰🤑💯😁

[@JC-tq9pe]

It's very reasonable to hold a mixture of both. I've got ETFs in my ROTH IRA and HSA for tax free growth, and cold storage spot.

[@williamr.hamelin9078]

Bitcoin in cold storage. If you have money stuck in RRSP or TFSA ETF or MSTR sure.

[@925Prophet]

Cold storage will not work for succession planning. My wife has nothing to do with investments for decades, let alone cold storage after I pass away. Cost basis is known in ETFs for tax purposes and there is no risk of losing my keys. And I can own it in my retirement accounts. It absolutely is the best way to own Bitcoin.

[@piaeichberg]

Thank you for the video. In my view it depends on the individual what the best solution is - my 70 year old mother is certainly not going to start learning how to manage a hardware wallet, she would have a high risk of messing it up (not saying that this the same for everyone who is 70 but my mum still struggles with a smart phone :-)). Not everybody wants to hold their own keys and one can also sell covered calls on the ETFs (if one wants to). Also, you don´t have to be full one or the other, you can have a mix of both

[@rajatsonifinance]

Yes for sure. Diversification is great.

[@Shinehead3]

You said something Beautiful Brother ❤ Rules without Rulers 😊

[@rajatsonifinance]

Not my phrase, but I really thought it was valuable!

[@MarkTurnermt]

You're doing a great job Rajat. Mark in the UK

[@jijib7691]

I am new to Bitcoin and crypto thanks to the ETFs. I bought BTC ETFs when they first came out and I have more than doubled my investment. I have taken the profits and left them as cash/fiat in my TFSA and waiting to see what the principal does. I also have some BTC but in a couple of exchanges. Cold storage is still so intimidating to me...but I will soon.

[@Chris-PBTHOR]

You are correct that it isn’t spot BTC but for people like me who have the bulk of their assets in their home and 401k I was able to get a heavy lift through ETFS starting this March and a 55 percent return. I can’t go sell the ETF and then pay taxes and a penalty to go turn it into spot bitcoin? No. I can’t do that. So I use ETF and MSTR in the self directed IRA and then I place cash that is disposable into spot BTC. Everyone should follow my direction if they can if they can move some of their 401k to a self directed IRA.

[@rajatsonifinance]

I mentioned this in the video If your money is in retirement accounts and locked in accounts, then maybe buying the ETFs is the best solution It's just not actual Bitcoin

[@925Prophet]

@@rajatsonifinancewho cares, you still see 100% the price action of bitcoin, that’s all that matters, this is investing

[@aimtiaz_]

My strategy is to have a small pool in bitcoin etf that I want to eventually cash out and pay for things like mortgage. I don’t want to dabble into my direct holdings for it. So for “liquid” BTC, it’s great.

[@eliseumalo4069]

Your keys? Your coins!

[@bobb7918]

If you have ever lost or misplaced your keys that is a very scary statement.

[@eliseumalo4069]

Not as scary as you being told by someone else that they own the crypto YOU paid for.

[@bobb7918]

@@eliseumalo4069 For me the ETFs are a lot safer to me until I know what I am doing. Everyone wants to say not your keys not your coins but no-one has come up with a good concise way to tell people how to do that safely.

[@mariedavison3707]

Awesome video 🎉

[@geoms6263]

Not Your Keys, Not Your Coins.

[@925Prophet]

That mantra is now obsolete with ETFs. Tell that to that phrase to the guys who lost their bitcoin because they lost their keys in the landfill.

[@geoms6263]

@@925Prophet when bitcoin become legal tender, those bitcoins in the ETF will be confiscated and people will receive fiat paper money

[@wolfpack3914]

Thank you for doing this video

[@Kamran-n6z7i]

I have my BTC on 6 different exchanges. I am worried about the single point of failure that can happen from multiple angles that comes with cold storage. I would prefer an option where there's self custody, but also some kind of 3rd party back up in case something happens to my cold storage.

[@orlando9325]

Only self storage everything else IS BS

[@birjo1568]

Etf has some pluses . Like you dont have to think about wallet ,they will keep it for you . Also its very easy to sell and send money from your broker to bank. As a minus it has yearly fees ,plus not your keys .. i would advice 90% real btc ,10 % etf btc .Also adding some microstrategy can be beneficial.

[@musyclover]

Redemption in kind seems imminent

[@TheShinning1]

Rajat, my man on a mission, nuff respect always 🫡

[@brendanmulcahy4273]

If I onboard people, they can either be grouped into those who go down the rabbit hole and those who just want exposure. For the former, who are willing to understand as much as they can including wallet management - I recommend cold storage. For people who don't and just want exposure, I recommend the ETFs - the risk is too high they'll lose everything.

[@PreciselyP3]

This is great!

[@SianoratoUtube-2024]

Cold storage 💯%

[@mrnobody1816]

As a BTC Maxi (+MSTR) IMO it lays out something like this: Meh: BTC Hot Wallet hodl Good-ish: BTC ETF Better: MSTR Best: Self HODL BTC I think ALL energy flowing towards BTC is, eventually, a good thing. And all of the above is energy moving into Bitcoin.

[@migooknamja]

IBIT vs Bitcoin is the same as GLD vs physical gold. If you are more paranoid, then you want physical. At the end of the day, you need fiat to buy things so eventually it will be exchanged for fiat.

[@rajatsonifinance]

Gold doesn't work as a medium of exchange. Bitcoin does.

[@migooknamja]

@rajatsonifinance only very few people send bitcoin as transactions

[@hhattonaom9729]

best: bitcoin in jade or coldcard 2nd best: MSTR stock

[@jonb8633]

We need a easier and safer way to hold crypto/BTC

[@adrianballesteros1553]

ETF FEES VS CENTRALIZED EXCHANGE FEES

[@jenis-01]

Best btc only exchanges to buy from in canada? low fees, ease of use, etc

[@jijib7691]

I have some BTC in with Kraken and Coinbase and they're both equally good and annoying at times. Their support sucks and there are long wait times. I'm going to try Moomoo next as they not only have ETfs but BTC also, to keep diversifying (next step cold storage also)

[@Luckyboyee777]

Are the bitcoin ETFs insured in case custodian of the bitcoin is hacked or an inside job loses or steals the bitcoin?

[@rajatsonifinance]

I think they are, but you can't replace bitcoin

[@BA-pz3lo]

I have Bitcoin ETFs FBTC in my Roth IRA. So my gains will be tax free when I’m a geezer 👍

[@geoms6263]

That Roth may rot in a few years. They will tax unrealized profits soon like in Australia. Keep dreaming is free tax. Not Your Keys, Not Your Coins.

[@rajatsonifinance]

Amazing

[@geoms6263]

They will tax unrealized profits soon like in Australia.

[@StarHeartsong]

I would say, if you factor in user error, that most people have a greater chance of losing their Bitcoin by going the route of self-custody.

[@StarHeartsong]

Happy to give a large enumeration of eventualities

[@StarHeartsong]

And I am concerned that the mini Bitcoin Wallet Self-Custody Industrial Complex that sponsors podcasters may be promoting this skew toward self-custody.

[@rajatsonifinance]

Definitely agree

[@123sarav1]

Hey Rajat, great content. Can you share your thoughts on today's news on DeepSeek with Chinese advanced quantum computing on possible impact on Bitcoin

[@rajatsonifinance]

It doesn't have an impact on bitcoin! It has an impact on openai

[@ryanblack1775]

Rajat, My friend was self custody with 55 btc, he spent 1000 hours on btc and got in 2017. He ended up converting it all to FBTC because he feared if he dies his family wont be able to get any of it coz his wife is useless when it comes to crypto. He said paying a small fee is worth the security. What do you think on this?

[@rajatsonifinance]

I would still keep some in cold storage

[@kathrinkaefer]

For me, I don't find ETFs convincing over holding actual Bitcoin. If I am going to hold fiat (which I do for emergency funds), I would rather have it in other investments.

[@rajatsonifinance]

Don't invest your emergency fund!

[@pomp4401]

Good luck inheriting your cold storage

[@jonnyrosenholm]

The problem with keeping real BTC is that when BTC is on the top and everyone wants to sell, you will have problems as the fees will be super super high and The Exchange Site will be totally clogged and your sales will go through too late. happened to me last bullrun.

[@rajatsonifinance]

I personally would not choose to be rug pulled over saving a few dollars

[@jonnyrosenholm]

In my country we have a deposit guarantee from the state that covers whether ETF or other investment goes bankrupt or do a rug pull. Not that I don't hold real BTC I do too.

[@coolmonkey619]

I dont have money to buy

[@rajatsonifinance]

Earn more then.

[@MasteredThe2D]

Great video, I am advocate for holding your own BTC and do not think the ETFs are worth for me. However Regarding the fees 01:50, it would be good to mention that holding your own BTC does have it's fees. The moment you buy on an exchange you pay a fee and depending on the exchange you also pay a withdrawal fee and the transfer fee. Regarding the statement 'you can lose all your money" 04:02, I don't live in the US so I don't know it works over there but most exchanges do have measures in place to follow the laws that guarantee a certain minimum payout in the case of a disaster.

[@rajatsonifinance]

For sure I agree with you, but there are no guarantees

[@bobb7918]

Most ETF fees are low. I have my money in them. I don’t have a clue how to take custody of bitcoin. Every person seems to have a different way to do it. This should be standardized and documented so anyone can figure out how to do it correctly. When you guys talk about it you assume way too much. Probably like me we have no idea what you are talking about.

[@financialconspirator3080]

Bitcoin savings mstr ibit FBTC investments

[@coreyoliver3182]

This.

[@dripta]

hey raj I think you’ve inspired me to also start a bitcoin education channel, lmk if we can connect and chat about it 👌

[@rajatsonifinance]

Just start!!!