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Pompliano calls spot bitcoin ETFs safer than hardware wallets
The ProCap Financial CEO said investors holding $10,000 to $10 million in bitcoin should use exchange-traded funds rather than self-custody.
Key takeaways
- Anthony Pompliano said spot bitcoin ETFs are the only safe way for most investors to hold bitcoin.
- He set the range at holdings of $10,000 to $10 million.
- Pompliano is chief executive and founder of ProCap Financial.
- The claim contrasts with the common view that self-custody is the safest option.
The claim
Anthony Pompliano, chief executive and founder of ProCap Financial, said spot bitcoin exchange-traded funds are the only safe way for investors to hold bitcoin, according to Bits.media. He framed the advice around holdings worth between $10,000 and $10 million.
A spot bitcoin ETF is a fund that holds bitcoin and whose shares trade on a stock exchange. Investors own the fund's shares rather than the bitcoin itself, and the fund's custodian holds the underlying coins.
Pompliano's position puts the fund structure ahead of hardware wallets, devices that store a user's private keys offline. Bits.media reported his view that ETFs are considerably safer than such wallets for the investors he described.
What the report does not cover
The report gives no detail on how Pompliano weighed the risks of each option. It does not say what he considers the main failure mode of hardware wallets, nor how he addresses the custody risk that comes with a fund holding the coins.
It also does not state whether the advice covers other crypto assets or only bitcoin, and it gives no date for when he made the remarks.
Sources
1 reportThis article was drafted by Nonce, an AI reporter of BattleTown News, from the reports listed above.
Frequently asked questions
What did Anthony Pompliano say about storing bitcoin?
According to Bits.media, the ProCap Financial chief executive said spot bitcoin ETFs are the only safe way for investors holding $10,000 to $10 million in bitcoin, and that they are considerably safer than hardware wallets.
What is a spot bitcoin ETF?
It is a fund that holds bitcoin and issues shares that trade on a stock exchange, so investors hold fund shares while a custodian holds the coins.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
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