ETF as wrench attack protection?


I know, NYKNYC. I also know that being self-sovereign by holding your own Bitcoin, is one, if not the, main revolution here. So, honest question, expecting honest answers, downvote me to hell if I deserve it.

But what about the idea of holding a small part of your stash in an ETF, as insurance against a wrench attack? (There exist no normal insurance products against that at the moment, at least not to my knowledge.)

If you got into a really bad wrench attack, even multisig wallets can be cracked (by holding your family in hostage for example). However, brokerage accounts are quite safe against that, due to all the slow workings and surveillance in the tradfi system. So, in the worst case, you would be left with your ETF at least, that you can then sell and buy back real Bitcoin.

Obviously, you open yourself up to be royally f*d in the arse by holding an ETF. That is, the ETF provider, the custodian or the government you live under are an obvious threat here.

So, in the end, I am wondering if it’s worth it to buy an ETF as insurance against physical attacks, or if it’s just plain stupid due to the inherent risks of such a product.


View Reddit by theyseemestackinView Source

Written by BTC India


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  1. A small amount in a hotwallet. A dummy wallet that only contains spent coins allowing you to claim to cashed out already etc. There are a few options. Of course this all relies on people never disclosing how much they own.

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