Long-time Bitcoin holders, often known as "Bitcoin OGs," are increasingly selling portions of their holdings to transition into Bitcoin exchange-traded funds (ETFs), according to Dr. Martin Hiesboeck, Head of Research at Uphold. This strategic move is not due to a loss of faith in Bitcoin but is driven by significant tax advantages, regulated exposure, and improved portfolio diversification. Dr. Hiesboeck highlighted that ETFs offer "incredible tax advantages with current rules, especially in the US," enabling investors to minimize capital gains burdens and optimize returns through compliant vehicles.
Specific examples underscore this trend, such as early Bitcoin arbitrage trader Owen Gunden transferring 3,549 out of his 11,000 Bitcoin holdings to an exchange, likely for ETF investment, as reported by Lookonchain. Additionally, other Satoshi-era whales have awakened from dormancy, including one with 80,000 Bitcoin that began moving funds after 14 years of inactivity. This shift is part of Bitcoin's maturation, with its compound annual growth rate (CAGR) declining to around 13% as of November 10, 2025, down from higher levels in previous years, according to Bitbo data.
Dr. Hiesboeck noted that the introduction of spot Bitcoin ETFs in markets like the U.S. has attracted institutional capital, reducing volatility and supporting steadier growth. He also emphasized that the distinction between Bitcoin and altcoins is fading, encouraging investors to focus on promising blockchain projects rather than maximalist ideologies. This evolution reflects a broader trend in the crypto ecosystem, where investors prioritize efficiency, regulatory compliance, and risk management, bridging traditional finance with decentralized assets without abandoning core principles.
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