Long-Time Bitcoin Holders Chase Tax Gains in ETFs

Long-Time Bitcoin Holders Chase Tax Gains in ETFs, Says Martin Hiesboeck

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 10, 2025

Key Takeaways

Dr. Martin Hiesboeck said early Bitcoin investors are moving funds into ETFs for better tax treatment and flexibility;
Hiesboeck stated that many investors see blockchain technology, not Bitcoin alone, as the real innovation;
Bitcoin’s role is shifting from high-growth investment to a hedge against financial instability.

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Many early Bitcoin BTC $105,559.76 holders are reducing their holdings to invest through exchange-traded funds (ETFs) and other blockchain projects, according to Dr. Martin Hiesboeck.

Hiesboeck, head of research at Uphold, explained on November 9 that several long-term investors are rebalancing their crypto exposure as the market matures.

He said, "There are several reasons why OG crypto holders are selling. Number one is to buy them back in the form of ETFs, which offer incredible tax advantages with current rules, especially in the US".

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He noted that ETFs give investors a way to keep exposure to Bitcoin while enjoying a more favorable tax structure. Another reason is a belief that blockchain technology has more potential for innovation and application than Bitcoin.

Hiesboeck also suggested that Bitcoin is evolving from an investment into a hedge against instability in traditional finance and government-issued currencies.

Additionally, Hiesboeck stated that drawing hard lines between Bitcoin and other cryptocurrencies no longer makes sense.

He noted that the crypto industry is expanding and that success depends on recognizing which projects can drive real change. He advised:

Do not be alarmed by some OG’s selling parts or all of their holdings. They are just growing out of adolescent maximalism.

Bitcoin appears to be in a transition phase that resembles what happens when a company goes public, according to Jordi Visser. How? Read the full story.