It's probably better for privacy too. I'm not sure by how much, I'm just guessing that it is to an extent.

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For sure. Depends on your threat model I guess but I'm pretty confident it'd break correlation for Chainalysis et al.

On a side note, Strike does no fee withdrawals if you're willing to wait 24 hours. They must be doing it as a batch and building it into their buy fees, which are also pretty good in my opinion.