Five Bitcoin Storage Alternatives Gain Attention After Hardware Wallet Incidents

Bitcoin storage alternatives — Following high-profile thefts from tampered hardware wallets, crypto holders are exploring alternative methods for securing their Bitcoin, each with distinct trade-offs in security, convenience, and control.

The recent incidents, including over $200 million stolen from Ledger devices and issues with Coldcard seed generation, have shaken confidence in dedicated hardware wallets. This has prompted a reassessment of other available options, from institutional products to more complex self-custody setups.

One prominent alternative is holding Bitcoin through spot exchange-traded funds (ETFs). While this removes direct ownership and on-chain utility, asset managers like 21Shares argue ETFs offer advantages in security, tax, and estate planning for many users. Notable figures, including pseudonymous analyst PlanB, have publicly moved holdings to ETFs, citing peace of mind after the hardware wallet breaches.

Other methods include passkey-based wallets, which use device-based biometrics instead of seed phrases, and multisignature (multisig) setups that split control across multiple keys. The core recommendation from analysts is to avoid relying on a single method, suggesting a diversified approach across different addresses and storage types to mitigate risk from any one point of failure.