Analysts say veteran Bitcoin holders are cashing out to leverage ETF advantages and explore broader blockchain investments
A new wave of long-term Bitcoin investors, often called “OGs,” is liquidating large portions of their holdings to take advantage of the tax benefits offered by Bitcoin exchange-traded funds (ETFs) and to diversify their exposure beyond Bitcoin, according to market experts.
Dr. Martin Hiesboeck, head of research at Uphold, explained that many early adopters are strategically realigning their portfolios. “There are several reasons why OG crypto holders are selling,” he said. “Number one is to buy them back in the form of ETFs, which offer incredible tax advantages under current U.S. regulations.”
He added that another factor driving this rotation is the growing recognition that the broader blockchain ecosystem holds greater potential for innovation. “They’ve realized the real revolution isn’t Bitcoin itself, but Blockchain, which is now being integrated across industries,” he said.
Bitcoin whales awaken after years of dormancy
Among those shifting positions is early arbitrage trader Owen Gunden, who reportedly transferred the final batch of his 11,000 BTC—worth over a billion dollars—to an exchange this week. Similarly, several Satoshi-era wallets holding tens of thousands of Bitcoin have reactivated after years of inactivity, with one whale moving 80,000 BTC in July after being dormant for 14 years.
Analysts suggest this trend signals a maturing phase for Bitcoin. “Bitcoin’s compound annual growth rate has been falling, dropping to around 13% as of November, which shows it’s transitioning from a high-growth asset to a hedge against systemic risk,” said Hiesboeck.
He added that institutional capital from spot ETFs has made Bitcoin more stable, reducing volatility and creating a steadier long-term growth outlook.
Beyond Bitcoin: a shift in market perspective
According to Hiesboeck, the next stage of crypto’s evolution will move beyond the “Bitcoin versus altcoins” debate. “We’re in an era where collaboration matters more than rivalry,” he said. “Do not be alarmed by OGs selling—this is the industry growing out of its adolescent phase.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.