Long-Term Bitcoin Holders May Shift to ETFs and Diversify Portfolios

• Tax-efficient ETF conversions: Holders like early trader Owen Gunden are moving BTC to exchanges to repurchase via ETFs, benefiting from U.S. tax rules.

• Blockchain’s broader applications: Investors recognize blockchain’s revolution across industries, prompting diversification beyond Bitcoin’s limited use cases.

• Declining growth rates: Bitcoin’s compound annual growth rate (CAGR) has fallen to around 13% as of November 10, 2025, signaling maturity with reduced volatility.

Discover why long-term Bitcoin holders are selling in 2025 amid ETF shifts and blockchain diversification. Explore expert insights on BTC’s maturing market and investment strategies for savvy crypto investors today.

Why Are Long-Term Bitcoin Holders Selling Their Holdings?

Long-term Bitcoin holders are increasingly liquidating positions to capitalize on evolving market dynamics, including the rise of spot Bitcoin ETFs and the broader adoption of blockchain technology. According to on-chain data trackers, notable sales by early adopters underscore this trend, with holdings transferred to exchanges for reinvestment or diversification. This shift reflects Bitcoin’s transition from a speculative asset to a more established store of value.

Many long-term Bitcoin holders, including early arbitrage trader Owen Gunden, are moving substantial portions of their BTC to exchanges, with Gunden transferring his final 3,549 coins from an 11,000 BTC stash on Sunday.

Analysts point to strategic reasons behind these sales. Dr. Martin Hiesboeck, head of research at the cloud-based financial service platform Uphold, explains that original gangsters (OGs) in the crypto space are reallocating assets for optimal returns. “There are several reasons why OG crypto holders are selling,” Hiesboeck stated. “Number one is to buy them back in the form of ETFs, which offer incredible tax advantages with current rules, especially in the U.S.”

The second driver is a growing recognition that blockchain technology underpins revolutionary applications far beyond Bitcoin itself. “They have realized that the real revolution isn’t Bitcoin but blockchain, which is being used in every industry,” Hiesboeck added. “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 exemplifies this pattern, as reported by on-chain analytics firm Lookonchain. Gunden completed his divestment with a significant transfer, highlighting how even prominent long-term holders are adapting to new opportunities.

Source: Lookonchain

This year has seen a resurgence in activity from dormant Bitcoin whales. For instance, a Satoshi-era holder with 80,000 BTC, inactive for 14 years, began moving funds in July, contributing to the ongoing sell-off narrative among veteran investors.

What Factors Are Driving Bitcoin’s Market Maturity?

Bitcoin’s evolution into a more mature asset is influenced by institutional inflows and declining growth metrics, as evidenced by its compound annual growth rate (CAGR). Hiesboeck notes that BTC’s CAGR has been diminishing, positioning it as a hedge against traditional financial system failures and fiat currency devaluation rather than a high-growth speculative vehicle.

Over the last four years, Bitcoin’s CAGR has steadily declined, entering single digits for the first time in April 2025. As of November 10, 2025, it stands at approximately 13%, per data from analytics provider Bitbo. This slowdown correlates with the launch of spot Bitcoin ETFs, which have attracted large-scale institutional capital. Such investments are typically less volatile than retail-driven trades, resulting in steadier price movements and moderated growth.

Bitcoin’s CAGR has been steadily declining. Source: Bitbo

“This maturity is accelerated by events like the launch of spot Bitcoin exchange-traded funds, which bring in large, institutional capital that 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 further emphasized that for maturing assets, reduced volatility is essential to achieve competitive risk-adjusted returns, a trend supported by various market analyses.

Macro analyst Jordi Visser, in recent commentary, described Bitcoin’s current phase as akin to an initial product offering, where early holders are exiting while new market participants enter, broadening token distribution. This rotation aligns with post-2000 dot-com crash patterns, where foundational technologies stabilized after initial hype.

Bitcoin’s price volatility has indeed shown signs of abatement, with historical data indicating a gradual decrease in daily price swings compared to its early years. Institutional adoption, including allocations from major funds and corporations, reinforces this stability. For example, ETF approvals have funneled billions into the ecosystem, providing a buffer against retail panic selling. Experts like Hiesboeck stress that this maturation benefits long-term investors by reducing downside risks while preserving upside potential in a diversified portfolio.

Frequently Asked Questions

Why are long-term Bitcoin whales transferring holdings to exchanges in 2025?

Long-term Bitcoin whales are transferring holdings to exchanges to facilitate sales or conversions into spot ETFs, which offer tax efficiencies under current U.S. regulations. This move allows reinvestment in diversified blockchain projects, as reported by on-chain trackers like Lookonchain, amid Bitcoin’s maturing market dynamics.

Is Bitcoin’s declining CAGR a sign of weakness for investors?

Bitcoin’s declining compound annual growth rate, now at about 13% as of November 2025, reflects its transition to a stable asset class rather than weakness. According to Uphold’s Dr. Martin Hiesboeck, this maturity, driven by institutional ETF inflows, lowers volatility and enhances its role as a reliable hedge against fiat instability.

Key Takeaways

• Strategic ETF Shifts: Long-term holders are selling BTC to repurchase via ETFs, gaining tax advantages and easier access for institutional portfolios.
• Blockchain Diversification: Investors view blockchain’s industry-wide applications as offering superior returns compared to Bitcoin’s current use cases.
• Market Maturation: With CAGR at 13% and reduced volatility, Bitcoin is evolving into a hedge asset, encouraging broader crypto ecosystem participation.

Conclusion

In summary, long-term Bitcoin holders selling their assets signals a pivotal shift toward ETF integrations and blockchain diversification, as Bitcoin matures with a declining CAGR and institutional backing. Experts like Dr. Martin Hiesboeck from Uphold highlight this as a natural progression away from maximalism toward pragmatic investing. As the crypto landscape evolves, investors should monitor these trends to build resilient portfolios that capitalize on emerging technologies and stable growth opportunities.