Talking about safety i would choose bitcoin and i think funds in xapo are not safe from even xapo because of their more safety features.They may suddenly ask for identity verification which i never like.Thats why i am using blockchain.info wallet over xapo and many other would also recommend the same.
Xapo is indeed not very safe because it has not such a good security, you cannot secure it optimal with the blockchain there are way more options without any doubts.
I agree its not a very safe option but they are having no fee's so for that they are good but for larger amount of bitcoins the blockchain wallet is way better without any doubts.
I think the blockchain is also already long in the game..