Spot BTC ETF vs Self-Custody Wallet
A **spot BTC ETF** holds bitcoin in institutional custody—you buy shares in a brokerage. **Self-custody** means controlling keys via hardware or software wallets—more responsibility, no fund expense ratio.
Step by step
1. Compare expense ratio
ETF annual fee vs zero custody fee but security burden.
2. Tax lots
ETF trades like stock; self-custody triggers on-chain disposal events.
3. Counterparty risk
ETF issuer and custodian vs your backup seed phrase discipline.
ETF vs self-custody
ETF for simplicity in IRAs; custody for sovereignty and DeFi bridges.
- Spot ETF: Brokerage access; expense ratio; no keys to manage.
- Self-custody: Full control; seed security; on-chain fees.
Use our calculators
Common mistakes
- Leaving coins on exchange thinking it is custody
- Ignoring estate plan for seed phrases
FAQ
Do ETFs track BTC 1:1?
Spot ETFs aim to—check premium/discount to NAV.