Long-term Bitcoin holders may be offloading their assets to transition into exchange-traded funds (ETFs) and diversify their crypto portfolios, according to Dr. Martin Hiesboeck, head of research at the cloud-based financial services platform Uphold.
“There are several reasons why early crypto adopters are selling,” Hiesboeck explained on Sunday. “The primary one is to repurchase Bitcoin through ETFs, which currently offer significant tax advantages, particularly in the United States.”
“The second reason is that they have realized that the real revolution isn’t Bitcoin but Blockchain, which is being used in every industry. There are therefore many other projects that promise greater returns than Bitcoin, which is still lacking a widespread use case.”
Early Bitcoin arbitrage trader Owen Gunden is among the latest investors to move his holdings to an exchange, transferring a total of 11,000 Bitcoin, including a final batch of 3,549 coins on Sunday, according to Lookonchain.
Several long-term Bitcoin whales have resurfaced this year after years of inactivity, liquidating large portions of their holdings. Among them was a Satoshi-era whale holding 80,000 Bitcoin, which had remained dormant for 14 years before beginning to move its massive stash in July.
Bitcoin’s Shift Toward Maturity
According to Dr. Martin Hiesboeck, Bitcoin’s compound annual growth rate (CAGR) has been steadily declining, indicating that the asset is transitioning from a high-growth investment to one primarily used as a hedge against failures in traditional financial systems and fiat currencies.
Bitcoin’s four-year CAGR fell into single digits for the first time in April and currently sits at around 13% as of Nov. 10, data from Bitbo shows.
“This growing maturity is being accelerated by developments such as the launch of spot Bitcoin exchange-traded funds (ETFs),” Hiesboeck noted. “These products attract large-scale institutional capital, which tends to be less volatile than retail-driven speculative flows, thereby reducing extreme price fluctuations and fostering slower but more stable long-term growth.”
“The goal for a maturing asset is for its volatility to also decline, which some sources suggest is happening, to maintain a competitive risk-adjusted return.”
Macro analyst Jordi Visser suggested earlier this month that Bitcoin is entering an initial product offering phase, with early holders cashing out while new traders accumulate tokens—broadening its overall distribution.
Beyond Bitcoin vs. Altcoins
According to Dr. Martin Hiesboeck, the long-standing divide between Bitcoin and altcoins is becoming increasingly irrelevant as the crypto space continues to evolve. He emphasized that the focus should shift toward supporting innovative projects with real potential rather than clinging to outdated rivalries.
“We’re in an exciting technological era with room for many projects,” Hiesboeck said. “It’s not about choosing sides—it’s not like supporting one football team over another.”
“Do not be alarmed by some OG’s selling parts or all of their holdings. They are just growing out of adolescent maximalism.”
