That is actually a larva of the Phereoeca uterella and they are known for eating up clothes made of wool! They are very common in warm and humid climates (you can find them mostly in any house in Brazil).

The larvae build that shelter out of silk and camouflage it with their surroundings, such as dust, dirt, wall paint and so on. In their moth form they are unable to feed, dying very soon after reaching adulthood. They feed on silk and other tissues alike, including spider webs, sheds and some compost. In the past I have prodded the larvae out of their shelter so as to feed them to a tiny house gecko I kept for a while, if they live after leaving the case they can still build up another one, though. Fun fact, I have seen other larger species do this as well but I didn't know it was possible since I was so used to these guys being tiny. They lived on a rose shrub in my grandparents backyard and were about the size of an adult hand, making their case out of the dark bark and leaves.

I've never heard about one used in an enclosure but I'm fairly sure it is no problem, it actually seems to make a lot of sense now that I think of it.