He said Bitcoin has proven itself, and he framed the debate as one about what people want to own, not just what the technology can do.
He called the split in investor goals a key reason markets feel more volatile, and he pointed to the years after 2016-2017 as evidence that Bitcoin kept growing in influence.
He explained that institutional-style custody and the rules around ETFs make those funds attractive to traditional investors who can’t buy or hold Bitcoin directly.
According to Pompliano, ETF funds are held by professional custodians, which makes them harder to steal than coins in personal wallets. That, he said, explains why large holders might move into ETFs even if they own Bitcoin already.
But he didn’t predict that everyone would follow that path. He described the move as sensible for some, while also saying a core of the Bitcoin community will keep pushing for self-custody.
The custody conversation is shifting from purely ideological to practical. Pompliano compared Bitcoin to the S&P 500 in the sense that it’s becoming a mainstream store of value for some investors.
Still, many will keep the “not your keys, not your coins” stance and hold private keys themselves, he added, keeping a cultural split alive inside the market.
Pompliano warned that splitting capital across ETFs, infrastructure bets, and direct holdings can add to price swings.
He said the current market offers enormous opportunity for different strategies, but that same diversity of bets can push volatility higher. That’s a simple trade-off, he suggested: more ways to invest can mean more movement in price.
Featured image from Unsplash, chart from TradingView
