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You can't hedge the system from within the system!

DALL·E 2024-02-11 11.44.10 - Imagine a split scene that visually contrasts two approaches to Bitcoin ownership. On one side, a vibrant, decentralized landscape represents the Bitc
Welcome to our latest post from The Bitcoin Adviser, where we delve into the crucial differences between owning Bitcoin directly and investing in Bitcoin ETFs. As the world of bitcoin continues to evolve, it's essential for investors to understand the various pathways to Bitcoin exposure and the distinct advantages that each offers.

It's important to acknowledge upfront that purchasing a Bitcoin ETF can be a perfectly valid option for those who may find it the most accessible or straightforward way to gain exposure to Bitcoin. Whether due to regulatory environments or investment rules, ETFs can serve as a gateway for many into the bitcoin market.
However, the core of our discussion today focuses on why holding the underlying asset Bitcoin and opting for self-custody might be a significantly better option for those looking to truly embrace what Bitcoin offers.

At The Bitcoin Adviser, we're passionate about the transformative potential of Bitcoin and the broader implications of its decentralised, secure, and borderless nature. This article aims to illuminate the reasons why direct ownership and self-custody of Bitcoin, not just investing in it through ETFs aligns more closely with the foundational principles of Bitcoin. We'll explore the autonomy, security, and freedom offered by Bitcoin, and how services like The Bitcoin Adviser can support you in navigating this landscape.

From the importance of decentralisation and control, to minimising counterparty risks, and enhancing security and privacy, we'll cover the key advantages. This exploration is designed to equip you with the knowledge to make informed decisions about how you choose to engage with Bitcoin, ensuring that your investment approach aligns with your financial goals and values.

So, whether you're a seasoned Bitcoin enthusiast or new to the world of cryptocurrency, this article is designed to shed light on why taking the step towards direct ownership and self-custody could offer you unparalleled benefits in the long run. Let's dive into the world of Bitcoin and discover how you can maximise your investment while staying true to the essence of what makes this digital currency so revolutionary. 

Decentralisation and Control

Bitcoin's foundational principle is decentralisation, meaning it operates outside of central banking and traditional financial systems. By owning and self-custodying Bitcoin, individuals maintain full control over their assets, without the need for intermediaries. In contrast, a Bitcoin ETF is a financial instrument offered within the traditional financial system, subject to its regulations, limitations, and potential points of failure.

Counterparty Risk

When you buy a Bitcoin ETF, you're exposed to counterparty risks, which are the risks associated with the other party in an agreement not meeting their obligations. This includes the risk of the ETF provider failing or facing regulatory issues. Direct ownership and self-custody of Bitcoin eliminate counterparty risk, as the asset is not tied to the financial health or integrity of any other institution.

Regulatory Risks

Regulatory changes or actions can impact Bitcoin ETFs directly, such as changes in tax laws, trading regulations, or even the outright banning of cryptocurrency-related financial products. Owning Bitcoin directly and self-custodying means your assets are less directly affected by these regulatory risks.

Accessibility and Censorship Resistance

Bitcoin is globally accessible and censorship-resistant. You can access your Bitcoin from anywhere in the world, at any time, without needing permission from a financial institution or government. This level of accessibility and resistance to censorship is not guaranteed with a Bitcoin ETF.

Potential for Higher Returns and Direct Exposure

Owning Bitcoin directly means you have direct exposure to its price movements. While a Bitcoin ETF does provide exposure to Bitcoin's price, it may also include fees, such as management fees or expense ratios, which can eat into returns over time. Additionally, ETFs may not always perfectly track the price of Bitcoin due to the structure of the fund or the assets it holds.

Security and Sovereignty

Self-custodying Bitcoin puts you in charge of your own security. While this comes with the responsibility of protecting your private keys, it also means you're not reliant on the security measures of an ETF provider or financial institution, which could be vulnerable to hacking, fraud, or mismanagement.


Direct ownership of Bitcoin can offer more privacy than investing in a Bitcoin ETF. While the Bitcoin blockchain is transparent, the use of personal wallets does not inherently tie your identity to your transactions as closely as financial accounts do.


As we wrap up our exploration into the advantages of holding and self-custodying Bitcoin versus investing in Bitcoin ETFs, it’s clear that the path to true financial sovereignty and security in the digital age lies in embracing the principles upon which Bitcoin was founded. Direct ownership and self-custody not only align with the ethos of decentralisation but also offer unparalleled benefits in terms of control, privacy, and resistance to systemic risks.

At The Bitcoin Adviser, we understand that navigating the world of bitcoin can be daunting. Whether you’re taking your first steps into Bitcoin or looking to deepen your existing investment, our goal is to empower you with the knowledge, tools, and confidence to take control of your bitcoin. Collaborative custody solutions represent a powerful way to manage your Bitcoin, ensuring that you benefit from both security and accessibility without having a single point of failure.

If you’re ready to explore how you can secure your financial future with Bitcoin, we invite you to visit The Bitcoin Adviser's About page. Here, you’ll find more information about our mission, our approach to Bitcoin advisory, and how we can assist you in achieving true autonomy over your assets. We encourage you to book a meeting with one of our dedicated Bitcoin advisers to discuss how we can support you in implementing collaborative custody solutions tailored to your needs.

Taking control of your Bitcoin with the help of The Bitcoin Adviser means embracing a future where you are the custodian of your financial destiny. Let us guide you through the process of securing your Bitcoin investment in a way that minimises risks and maximises your potential for growth and independence.

Your journey towards financial sovereignty begins with a single step. Contact The Bitcoin Adviser today to learn more about how we can help you navigate the exciting world of Bitcoin with confidence and security. Together, we can chart a course towards a future where you have full control over your Bitcoin, free from the constraints and vulnerabilities of traditional financial systems.

Book a Meeting with Peter to learn more about becoming a Bitcoin Adviser Client.