Bitcoin Ogs Sell Up To Get ‘incredible Tax Advantages’ Of Etfs:...
Many long-term Bitcoiners are selling up, such as early arbitrage trader Owen Gunden, who shifted the last of his 11,000 Bitcoin to an exchange.
Long-term Bitcoin holders could be selling their holdings to shift into exchange-traded funds (ETFs) and to diversify their crypto portfolios, says Dr. Martin Hiesboeck, the head of research at cloud-based 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.”
Early Bitcoin (BTC) arbitrage trader Owen Gunden was among the latest to shift his 11,000 Bitcoin holdings to an exchange, with a final transfer of 3,549 coins on Sunday, according to Lookonchain.
Several long-term Bitcoin whales have also woken up after years of dormancy this year and sold off their holdings, including a Satoshi-era Bitcoin whale with 80,000 Bitcoin, which had been inactive for 14 years before it started moving around its massive stash in July.
Hiesboeck said Bitcoin’s compound annual growth rate (CAGR) has been diminishing, suggesting it’s moving away from being a high-growth asset to use “as a hedge against traditional financial systems failures and fiat.”
Bitcoin's CAGR over the last four years has been steadily declining and dropped into single digits for the first time in April. As of Nov. 10, it’s around 13%, according to Bitbo.
“This maturity is accelerated by events like the launch of spot Bitcoin exchange-traded funds, which bring in large, institutional capital that is generally less volatile than retail-driven speculative flows, thus dampening extreme price swings and contributing to a lower, steadier growth rate,” Hiesboeck said.
Related: BTC and crypto sell-off reminiscent of post-2000 dot-com crash: Analyst
Macro analyst Jordi Visser suggested earlier this month that Bitcoin is in an initial product offering phase, with original holders rotating out and new traders scooping up the tokens, thereby widening distribution.
Source: CoinTelegraph
