Bitcoin whales are starting to sell off their holdings as they look to reinvest in exchange-traded funds (ETFs) that come with significant tax advantages, according to Martin Hiesboec, who heads research at Uphold, a cloud-based financial services platform.
In a recent post on X, Hiesboec explained why long-term crypto holders are opting to sell. The main driver behind this move appears to be the opportunity to acquire cryptocurrencies through ETFs, particularly given the favorable tax treatment in the U.S. at the moment.
“It’s also a way to justify the heat on hidden stashes.”
Hiesboec pointed out that many whales are realizing that blockchain technology, rather than Bitcoin itself, holds the real transformative potential. He noted that Bitcoin hasn’t achieved widespread utilization yet and has yet to solidify its status as a safe-haven asset, akin to gold. The increased involvement of ETFs and institutional investors has, paradoxically, made Bitcoin a riskier asset, he remarked.
Bitcoin’s compound annual growth rate has also seen a decline, which, according to Hiesboec, indicates that it’s drifting away from being considered a high-growth asset. Consequently, many investors are now scouting for opportunities in other areas. Notably, figures like Cathie Wood are reassessing their Bitcoin price forecasts downward.
Hiesboec observed that spot Bitcoin ETFs are attracting substantial institutional capital, which he believes tends to be less volatile than speculative retail activity, resulting in a more stable growth trajectory.
He also expressed irritation with Bitcoin maximalists who allegedly created the term “altcoin” to dismiss other crypto projects. Interestingly, he mentioned that many previous Bitcoin die-hards he’s encountered have begun to diversify their portfolios to include other cryptocurrencies like Solana (SOL), Avalanche (AVAX), and Sui (SUI).
“Don’t worry if some OGs sell some of their holdings or assets. They’re just growing out of their adolescent maximalism.”
As of now, Bitcoin is trading at $103,242.82, reflecting a 2.5% drop over the past day.
