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Bitcoin Updates: Veteran Bitcoin Holders Swap HODLing for ETFs as Digital Gold Attracts More Institutional Interest

Bitcoin Updates: Veteran Bitcoin Holders Swap HODLing for ETFs as Digital Gold Attracts More Institutional Interest

Bitget-RWA2025/11/10 16:56
By:Bitget-RWA

- Bitcoin OGs increasingly sell holdings to ETFs for tax deferrals and institutional legitimacy, signaling market maturation. - U.S. tax advantages enable long-term holders to optimize returns amid slower growth, shifting from "HODL" to strategic diversification into AI/DePIN. - ETF outflows pressure Bitcoin's price, yet on-chain data shows long-term holders remain net accumulators, reflecting tactical repositioning. - Institutional adoption grows as Bitcoin gains recognition as inflation hedge, with Black

Bitcoin Long-Term Investors Turn to ETFs for Tax Efficiency and Portfolio Expansion

Early Bitcoin adopters are increasingly offloading parts of their assets to benefit from the tax perks and institutional credibility provided by exchange-traded funds (ETFs), indicating a maturing crypto landscape. Experts point out that this movement marks a shift from speculative holding to more calculated portfolio strategies as

becomes recognized as a reliable, institution-friendly investment, according to a .

This trend is largely fueled by the specific tax advantages ETFs offer under U.S. law, enabling investors to delay capital gains taxes by reacquiring Bitcoin through ETF channels, as outlined in the same

. This approach is especially attractive to veteran holders, often called "OGs," who once championed the "HODL" philosophy but are now more focused on maximizing returns during a period of slower market growth. Cryptocurrency analyst Dr. Martin Hiesboeck observed that this development signals Bitcoin’s evolution from a high-risk, high-reward asset to a digital store of value, similar to gold, as referenced in the .

Bitcoin Updates: Veteran Bitcoin Holders Swap HODLing for ETFs as Digital Gold Attracts More Institutional Interest image 0
Some of Bitcoin’s earliest backers, like arbitrage trader Owen Gunden, are selling off their coins to reinvest in ETFs or branch out into other blockchain ventures, as detailed in a . Gunden, who liquidated his entire 11,000 BTC stash, represents a rising group of original holders reallocating funds to areas such as artificial intelligence, decentralized physical infrastructure networks (DePIN), and blockchains based on directed acyclic graphs (DAG), as mentioned in the . This move toward diversification corresponds with Bitcoin’s slowing compound annual growth rate (CAGR), which analysts link to diminishing explosive gains and a more saturated market, as previously discussed in the .

The rise of ETFs has paralleled historic withdrawals from leading funds. BlackRock’s iShares Bitcoin Trust (IBIT) saw $570 million in redemptions during a single week in late October 2025, the highest in nine months, according to a

. These significant outflows, combined with broader economic uncertainty, have weighed on Bitcoin’s price. Nevertheless, the cryptocurrency has demonstrated strength, reaching $106,000 as renewed confidence in U.S. fiscal policy and increased corporate interest fueled optimism, as reported in the .

Even with these withdrawals, blockchain data shows that long-term investors continue to accumulate Bitcoin overall, a trend that matches previous periods of market consolidation, as highlighted in the

. This pattern indicates that the current selling may be more about tactical repositioning than a lack of faith in Bitcoin’s future.

This development also points to a larger transformation in the industry. As Bitcoin’s speculative appeal fades, its reputation as a safeguard against inflation and economic instability is gaining traction among institutions, as noted in the

. BlackRock’s recent launch of a Bitcoin ETF in Australia further demonstrates the global trend toward institutionalizing crypto, with the company aiming to meet rising demand in Asia-Pacific, as covered in a .

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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