Matej Zak, CEO of hardware wallet company Trezor, called the rise of Bitcoin (CRYPTO: BTC) exchange-traded funds and corporate treasuries a "double-edged sword" as they bring in fresh money to the market but also weaken some of BTC's core ideals.
It’s A Pity, Says Zak
Speaking with Benzinga at the launch event for the company's latest product, Trezor Safe 7, in Prague, Zak admitted that these institutional-grade investments create "buzz" and add "extra marketing dollars" on Bitcoin.
"So that’s probably positive in the sense that more people know about crypto," Zak added.
The flip side, he believes, is that people are not holding Bitcoin directly.
"Because like, why BTC even started? Well, because people had financial products that were heavily leveraged, the financial markets collapsed and a lot of people lost all their money," Zak said, possibly referring to the message encoded in the genesis block that many have linked to the 2008 financial crisis.
He found it "worrying" that people would go back to products which are powered by leverage that firms do not fully own.
"And that’s kind of a pity when this whole innovation started with like digital gold, like the idea of you can actually own the piece of it," Zak argued.
See Also: Bitcoin (BTC) Price Predictions: 2025, 2026, 2030
The Era Of ETFs, BTC Treasuries
Indirect channels for BTC exposure have grown over the last two years, allowing investors to bet on the cryptocurrency’s price moves without worrying about private/public keys and wallets.
Spot Bitcoin ETFs stand out, where investors can buy shares that mirror the price of actual BTC. As of this writing, these vehicles hold over $155 billion in assets under management, with the iShares Bitcoin Trust ETF (NASDAQ:IBIT) currently the world’s largest cryptocurrency fund, according to SoSo Value. Since launch, the cumulative net inflows into Bitcoin ETFs have exceeded $62 billion.
Similarly, Michael Saylor’s Strategy Inc. (NASDAQ:MSTR) popularized Bitcoin treasury companies, which leverage traditional capital markets tools like share issuance and fixed-income debt to buy BTC. They currently have approximately 1.043 million BTC, worth $119 billion, according to CoinGecko. However, the model of strategic debt financing has often faced criticism.
It’s also worth noting that retail sentiment appears to be softer than it was during previous bull cycles in 2017 and 2021. Google search traffic for “Bitcoin” and “Buy Bitcoin” is well below previous highs, suggesting that the current cycle is driven by institutional players.
Are Self-Custody Firms At Risk?
These options differ significantly from self-custody wallet businesses such as Trezor, which rely on customers purchasing and storing Bitcoin directly.
Trezor unveiled the Trezor Safe 7 product at the Prague event, claiming it to be the world’s first “quantum-ready wallet,” featuring the world’s first transparent and auditable Secure Element chip.
Price Action: At the time of writing, BTC was exchanging hands at $113,889.56, down 1.32% in the last 24 hours, according to data from Benzinga Pro.
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