Long-Term Bitcoin Holders Shift Toward ETFs and Diversified Crypto Investments

Long-term Bitcoin OGs appear to be selling portions of their holdings to take advantage of new opportunities in ETFs and other blockchain projects, according to Dr. Martin Hiesboeck, head of research at financial services platform Uphold.

Hiesboeck explained on Sunday that many early adopters are cashing out their Bitcoin positions to repurchase exposure through ETFs, which currently offer significant tax benefits, particularly in the United States. He added that some seasoned investors now view BTC as just one part of a much larger technological revolution centered around blockchain applications across industries.

“The real transformation is happening through blockchain technology,” he noted, pointing out that many emerging blockchain-based projects now offer potentially higher returns than BTC, which continues to face challenges in achieving widespread real-world use.

Veteran Bitcoin Holders Move Their Assets

Recent on-chain activity supports this trend. Early Bitcoin arbitrage trader Owen Gunden reportedly transferred his remaining 3,549 BTC to an exchange on Sunday, completing the move of his entire 11,000-coin portfolio, according to blockchain analytics firm Lookonchain.

This follows similar moves by several long-dormant Bitcoin whales earlier in 2025, including one “Satoshi-era” holder who began shifting an 80,000-Bitcoin stash in July after more than 14 years of inactivity. 

Analysts suggest such moves could reflect a broader generational shift, with original BTC holders rebalancing their portfolios in favor of regulated financial products and diversified blockchain investments.

A Maturing Market and Changing Investor Base

Hiesboeck said Bitcoin’s diminishing compound annual growth rate (CAGR) shows it is evolving into a more stable asset class rather than a high-growth speculative play. Data from Bitbo indicates that BTC’s CAGR has declined into the low double digits, around 13% as of November 10.

He attributed this trend to the launch of spot Bitcoin ETFs, which have brought in large institutional capital. These inflows tend to be less volatile than retail speculation, leading to steadier price performance and reduced market swings. 

According to Hiesboeck, this transition reflects BTC’s “maturity” as an asset designed to hedge against traditional financial instability rather than serve as a quick-growth investment.

Macro analyst Jordi Visser recently described the current phase as one of distribution, where early holders are selling to newer investors, expanding market participation.

Hiesboeck concluded that the next phase of crypto innovation will not be defined by “Bitcoin versus altcoins,” but by the success of projects that deliver real-world impact. He encouraged investors not to be alarmed by early adopters selling their holdings, saying it signals growth and diversification rather than decline.