Long-term Bitcoin holders could be selling their holdings to shift into exchange-traded funds (ETFs) and diversify their crypto portfolios, according to Dr. Martin Hiesboeck, head of research at cloud-based financial service platform Uphold.
“There are several reasons why OG crypto holders are selling,” Hiesboeck explained on Sunday. “Number one is to buy them back in the form of ETFs, which offer incredible tax advantages with current rules, especially in the US.”
He added, “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.”
### Notable Bitcoin Holders Moving Their Assets
Early Bitcoin (BTC) arbitrage trader Owen Gunden was among the latest to shift his 11,000 Bitcoin holdings to an exchange, with a final transfer of 3,549 coins on Sunday, according to Lookonchain.
Several long-term Bitcoin whales have also reactivated after years of dormancy this year and sold off parts of their holdings. This includes a Satoshi-era Bitcoin whale with 80,000 Bitcoin, which had been inactive for 14 years before it started moving its massive stash in July.
### Bitcoin as a More Mature Asset
Hiesboeck noted that Bitcoin’s compound annual growth rate (CAGR) has been diminishing, suggesting the asset is moving away from being a high-growth investment to serving more as “a hedge against traditional financial systems failures and fiat currency.”
Bitcoin’s CAGR over the last four years has steadily declined, dropping into single digits for the first time in April. As of November 10, it was around 13%, according to Bitbo.
“This maturity is accelerated by events like the launch of spot Bitcoin exchange-traded funds, which bring in large institutional capital. This capital is generally less volatile than retail-driven speculative flows, thus dampening extreme price swings and contributing to a lower, steadier growth rate,” Hiesboeck explained.
He continued, “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.”
### Wider Market Dynamics and Future Outlook
Macro analyst Jordi Visser suggested earlier this month that Bitcoin is currently in an initial product offering phase. In this phase, original holders are rotating out, while new traders are acquiring tokens, thereby widening distribution.
Hiesboeck also argued that the distinction between Bitcoin and altcoins is becoming less relevant as the crypto space evolves rapidly. He advocates moving beyond old rivalries and focusing on projects “that will change the world and avoid those that will likely fail.”
“We are in an exciting tech space with room for many projects; it’s not a question of which football team you support,” he said. “Do not be alarmed by some OGs selling parts or all of their holdings. They are just growing out of adolescent maximalism.”
https://cointelegraph.com/news/bitcoin-ogs-sell-get-tax-advantages-etfs-analyst