Whales offload 500,000 Bitcoin as ETFs, corporates and funds reshape crypto’s future
A silent but significant transfer of control is underway in the $2.1 trillion Bitcoin market. Long-time whales are selling off their holdings while institutional investors like ETFs and corporates absorb record amounts of Bitcoin, reshaping its identity and dampening volatility.
A silent shift in power is reshaping the $2.1 trillion (R37 trillion) Bitcoin market, as large, long-time holders offload hundreds of thousands of coins, making way for institutional giants to tighten their grip on the world’s largest cryptocurrency.
The steady stream of sales from so-called whales — including miners, offshore funds and anonymous wallets — is being matched almost one-for-one by institutional players such as exchange-traded funds (ETFs), corporates and asset managers. The result: Bitcoin remains locked near its record high of $110,000, with volatility steadily declining and its role within global finance being fundamentally transformed.
Despite a wave of optimistic headlines, from major corporations adopting Bitcoin to the Trump administration’s strong endorsement of cryptocurrencies, the digital asset has struggled to break out of its established trading range in recent months. Behind the scenes, long-dormant whales have been quietly trimming their positions, even as institutional investors ramp up their buying. This gradual switchover is redefining Bitcoin’s identity — from a high-risk, speculative trade to a strategic, long-term allocation.
Over the past year, whales have offloaded more than 500,000 Bitcoin — valued at over $50 billion at current prices — according to figures from 10x Research. That figure mirrors the net inflows into US-based ETFs, which have surged in popularity following regulatory approval. The amount is also comparable to the $65 billion worth of Bitcoin accumulated over the past five years by Michael Saylor’s firm, now operating under the name Strategy.
Many of these large holders date back to Bitcoin’s earliest days, when its price traded well below current levels. In several instances, whales are not simply cashing out, but converting their Bitcoin into equity exposure through private transactions tied to the public markets.
“What we’re seeing is a churning in the base,” said Edward Chin, co-founder of Parataxis Capital. “A less covered driver and potential reason for the churn and increasing network activity seems to be driven by whales converting their BTC into equity exposure through in-kind contributions of BTC into financing transactions tied to the public markets.”
The new wave of institutional interest has been profound. ETFs, corporate treasuries, and other major entities now control around a quarter of all Bitcoin in circulation. Just five years ago, Flipside Crypto research suggested that approximately 2% of anonymous blockchain accounts controlled 95% of Bitcoin holdings. That concentration is now shifting rapidly.
“Crypto is becoming less of an outlier and more established as a legitimate asset class,” said Rob Strebel, head of relationship management at trading firm DRW, which operates crypto-focused arm Cumberland. With that shift, Strebel added, “we expect to see a compression in volatility.”
Indeed, this dampening of Bitcoin’s famously wild price swings is already evident. Deribit’s BTC Volatility Index, which tracks 30-day forward-looking annualised volatility expectations, has dropped to its lowest level in nearly two years.
While whales continue to reduce their exposure, institutional investors have absorbed nearly 900,000 Bitcoin over the past year, according to 10x Research. As this quiet transfer of power unfolds, Bitcoin’s future may lie less in the hands of anonymous early adopters and more with the financial titans now staking their claim.
