Bitcoin exchange-traded funds (ETFs) have opened cryptocurrency investing to traditional investors, but Trezor CEO Matěj Žák argues that buying fund shares is fundamentally different from owning Bitcoin (BTC) directly.
In an Oct. 29 interview with Sujal Jethwani on The Sujal Show , Žák described ETF holdings as "paper Bitcoin,"arguing that investors gain price exposure without controlling the underlying cryptocurrency.
"It's not truly Bitcoin in its true sense that you would own the keys, you would have access to the chain, and you can spend it anytime you want," Žák said.
He explained that ETF investors rely on legal arrangements with fund providers rather than holding Bitcoin's private keys themselves.
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Trezor CEO makes the case for Bitcoin self-custody
Žák contrasted ETFs with self-custody, where investors control the private keys needed to access and transfer their Bitcoin.
"The self-custody is a concept where you really keep the private keys and hence the assets in your own ownership and nobody else can really take it from you," he said.
He cited the collapse of FTX in November 2022 as an example of the risks associated with trusting centralized intermediaries.
FTX, once one of the world's largest crypto exchanges, filed for bankruptcy after a liquidity crisis exposed an $8 billion shortfall. Its founder, Sam Bankman-Fried, was later sentenced to 25 years for fraud.
Žák also criticized ETF fees, arguing that holding Bitcoin directly avoids recurring fund management charges.
"So yeah, we recommend of course to people self-custody their coins directly,"he added.
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Recent crypto breaches highlight custody risks
His comments come amid renewed concerns over cryptocurrency custody following several security incidents.
On Sept. 24, crypto exchange Bitget reported unauthorized transfers involving approximately $387 million in assets from its hot wallets, according to The Block .
On Oct. 9, hardware wallet maker Ledger launched an investigation into reported fund losses involving devices purchased through Southeast Asian reseller CryptoBilis.
The incident, initially linked to more than $86 million in suspected losses, also highlighted the risks lurking in hardware wallet supply chains.
While self-custody removes reliance on centralized custodians, users remain responsible for securing their recovery phrases and devices.
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This story was originally published by TheStreet on Nov 2, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
