Veterans of Bitcoin Selling for Tax Benefits from ETFs, As Per Analyst

Many long-term Bitcoin investors are cashing out, including early arbitrage trader Owen Gunden, who transferred the last of his 11,000 Bitcoin to an exchange.

Long-term Bitcoin holders might be selling their assets to convert into exchange-traded funds (ETFs) and to diversify their cryptocurrency portfolios, according to Dr. Martin Hiesboeck from the financial service platform Uphold.

“There are several reasons why OG crypto holders are selling,” Hiesboeck said 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.”

“They have realized that the real revolution isn’t Bitcoin but Blockchain, which is being used in every industry. Many other projects promise better returns than Bitcoin, which still lacks a widespread use case.”

Gunden was noted for his final transfer of 3,549 coins on Sunday, as per Lookonchain.

Several long-term whale investors, after years of inactivity, have also begun selling their assets, including a Satoshi-era whale that moved 80,000 Bitcoin after being dormant for 14 years.

Bitcoin’s Maturity

Hiesboeck indicated that Bitcoin is transitioning to a more mature asset, suggesting that its annual growth rate has diminished, repositioning its role as a hedge against traditional financial system failures.

Bitcoin’s compound annual growth rate (CAGR) has been declining and recently fell into single digits for the first time, measured at about 13% as of November 10, according to Bitbo.

“This maturity is accelerated by events like the launch of spot Bitcoin ETFs, which attract institutional investment, generally less volatile than retail-driven speculative activity, thereby stabilizing price fluctuations.”

“The goal for a maturing asset is to see its volatility decline, which some sources suggest is occurring, to secure competitive risk-adjusted returns.”

Macro analyst Jordi Visser mentioned that Bitcoin is undergoing an initial product offering phase, with original holders selling and new investors acquiring the tokens, thus broadening distribution.

Evolving Dynamics

Hiesboeck also argues that the division between Bitcoin and altcoins is becoming less relevant. Instead, the focus should be on projects that have the potential to make a meaningful impact while avoiding those likely to fail.

“In this evolving tech landscape, the question shouldn’t be which cryptocurrency you support,” he stated.

“Don’t worry if some OGs are selling parts or all of their holdings. They are merely outgrowing adolescent maximalism.”

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