Strategic Shift Driven by Tax Advantages and Diversification
Long-time Bitcoin holders — often referred to as “OGs” — appear to be making a strategic pivot. Instead of simply holding onto their BTC, many are now reallocating their crypto wealth into Bitcoin Exchange-Traded Funds (ETFs). This shift is not driven by panic or a loss of faith in Bitcoin but by smart financial planning, according to Dr. Martin Hiesboeck, Head of Research at Uphold.
The rise of spot Bitcoin ETFs has created new pathways for investors who want exposure to Bitcoin without holding it directly. For OGs who’ve been in the game since Bitcoin’s early days, this represents an opportunity to reduce risk, simplify tax reporting, and secure more flexibility with their investments.
The Tax Edge of Switching to ETFs
One of the biggest motivators behind this trend is taxation. In many jurisdictions, selling Bitcoin directly can lead to hefty capital gains taxes. However, switching into ETFs—especially if done strategically or within certain tax-advantaged accounts—can help reduce or delay tax obligations.
ETFs are also generally easier to manage for compliance and reporting purposes. By moving their holdings into regulated financial products, these early adopters can avoid some of the complexities involved with tracking wallet movements, especially when large sums are involved.
LATEST: Bitcoin OGs could be selling their holdings to shift into ETFs for tax advantages and to diversify their portfolios, says Uphold's head of research Dr. Martin Hiesboeck. pic.twitter.com/OGqOvy1d7y
— Cointelegraph (@Cointelegraph) November 10, 2025
Diversification Through Regulated Markets
Beyond taxes, Bitcoin OGs are also thinking about portfolio balance. Holding only BTC may expose them to price volatility. With ETFs, they gain exposure to the same asset but within a regulated framework, sometimes paired with other financial tools or even multi-asset strategies.
This move signals maturity in the crypto space. As institutional-grade products become more accessible, even the earliest adopters are recognizing the value of evolving with the market—not just riding it out.