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Long-term Bitcoin holders are starting to move their assets into exchange-traded funds (ETFs), seeking tax efficiency and diversification. According to Dr. Martin Hiesboeck, Head of Research at financial services platform Uphold, these early Bitcoin investors — often called “OGs” — are now rethinking how they hold and manage their digital wealth.
Why Bitcoin Veterans Are Selling Their Coins
In a recent post, Hiesboeck explained that several long-term Bitcoin holders are selling their holdings to take advantage of the tax benefits offered by Bitcoin ETFs in the United States.
“There are several reasons why OG crypto holders are selling,” he said. “The first is to buy them back in the form of ETFs, which offer incredible tax advantages under current U.S. rules.”
Unlike direct Bitcoin ownership, ETFs are structured financial products that can provide certain investors — especially institutional and high-net-worth individuals — with easier tax management and regulatory clarity. For example, investors can potentially defer capital gains taxes by trading within a fund, rather than triggering taxable events each time they sell Bitcoin directly.
Diversification Beyond Bitcoin
Another reason for this shift, Hiesboeck noted, is the growing realization that blockchain technology — not just Bitcoin — represents the broader revolution in finance and data systems.
“The second reason,” he added, “is that many have realized the real revolution isn’t Bitcoin alone but blockchain, which is now being used across multiple industries. Many projects promise higher returns and real-world utility, while Bitcoin still lacks a widespread use case.”
This view reflects a wider trend among early adopters, many of whom are now exploring investments in sectors like decentralized finance (DeFi), tokenized assets, and blockchain infrastructure projects that go beyond the original cryptocurrency.
Major Bitcoin Whales on the Move
Recent on-chain data supports this trend. Blockchain analytics firm Lookonchain reported that early Bitcoin arbitrage trader Owen Gunden recently moved his remaining 11,000 BTC to an exchange, with a final transfer of 3,549 coins taking place on Sunday.
He’s not alone. Several other long-term “whale” wallets — including one holding 80,000 BTC mined during the early “Satoshi era” — have become active this year after more than a decade of dormancy. The revived wallets suggest that some of Bitcoin’s earliest investors are beginning to realize profits or reposition their holdings.
Bitcoin’s Maturing Growth Curve
Analysts believe that this shift among old holders aligns with Bitcoin’s gradual transformation into a more mature, less volatile asset.
Hiesboeck pointed out that Bitcoin’s compound annual growth rate (CAGR) has been steadily declining over the past few years. According to data from Bitbo, Bitcoin’s four-year CAGR dropped into single digits for the first time in April 2025 and currently stands at around 13%.
“This maturity is being accelerated by the introduction of spot Bitcoin ETFs,” he said. “These funds attract large institutional investors, whose capital tends to be more stable than retail-driven speculative trading. This reduces volatility and leads to slower but steadier growth.”
In short, Bitcoin is transitioning from a high-growth speculative asset into a more established form of digital wealth — similar to gold — used as a hedge against traditional financial risks and fiat instability.
Bitcoin ETFs Mark a New Era
The launch of spot Bitcoin ETFs has fundamentally changed how investors interact with the world’s largest cryptocurrency. The ability to gain exposure to Bitcoin through regulated funds has opened the door for pension funds, banks, and asset managers — institutions that previously avoided direct crypto trading due to custody and compliance concerns.
As more investors choose ETFs over direct ownership, Bitcoin’s price action may become less volatile, with fewer sudden liquidations and a more predictable growth trajectory. Analysts believe this could strengthen Bitcoin’s reputation as a long-term, stable investment rather than a speculative asset.
Beyond Bitcoin: The Broader Blockchain Opportunity
Hiesboeck also emphasized that the distinction between Bitcoin and “altcoins” is becoming increasingly outdated. In his view, the crypto industry is evolving beyond tribal debates into a broader ecosystem of interoperable technologies.
“The next phase isn’t about Bitcoin versus altcoins,” he said. “We’re in a dynamic tech space with room for many projects that can genuinely change the world. Investors should focus on innovation rather than old rivalries.”
This perspective echoes sentiments from macro analysts like Jordi Visser, who recently noted that Bitcoin is now entering a new distribution phase — where early holders sell to new participants — similar to the natural market cycles seen during the early internet boom.
The Bottom Line
Bitcoin’s original believers — the OGs — helped build the foundation of the crypto ecosystem. Now, as the market matures and regulated investment vehicles emerge, many of them are adapting. By shifting from direct holdings to ETFs, they’re seeking not only tax efficiency and diversification but also a smoother, more institutional approach to managing digital wealth.
The rise of Bitcoin ETFs may signal a turning point in how investors perceive the asset — not just as a speculative tool, but as a legitimate part of the global financial system.
