Institutional Giants Are Gobbling Up Bitcoin—And Early Whales Are Cashing Out

The great Bitcoin wealth transfer is underway—and Wall Street's new sharks are feasting.

From Crypto Cowboys to Suits

Analysts confirm institutional buyers are vacuuming up BTC from OG holders. The original whales—those anarchic early adopters who mined coins on laptops—are finally selling. Meanwhile, BlackRock’s ETF and friends now soak up supply like a hedge fund sponge.

Market Mechanics Shift

Liquidity’s moving from diamond-handed cypherpunks to… well, guys who wear diamond cufflinks. Volatility’s dropping as cold institutional capital replaces meme-fueled retail traders. (Cue the ‘mature asset class’ PowerPoint slides.)

The Ironic Twist

Ten years ago, Bitcoin was meant to *destroy* these very institutions. Now JPMorgan clients get BTC exposure alongside their wine futures. The revolution will be institutionalized—with management fees, of course.

Healthy dynamic as new buyers emerge

According to Swan Bitcoin, the largest rotation in bitcoin’s history is nearing completion, with the ‘old guard’ being replaced by institutions and treasury firms. CK Zheng, co-founder of ZX Squared Capital, stated:

“It’s become a different type of order in the future evolution of the Bitcoin process; it’s a healthy way […] for future growth.”

He emphasized that whale selling is not negative because new, conviction-driven buyers are entering the market, reflecting a healthy bull market dynamic.

Institutions now hold significant bitcoin supply

The shift in ownership is part of bitcoin’s natural evolution, according to Zheng.

Data from our treasuries database indicates 219 entities—including ETFs, countries, companies, and miners—now collectively hold 3.6 million BTC, valued at over $419 billion.

This trend demonstrates growing institutional and treasury adoption, further integrating bitcoin into the financial system.

OG whale exits signal market maturity

Ryan McMillin of Merkle Tree Capital noted that the movement of bitcoin from early adopters to institutional holders mirrors gold’s transition into mainstream finance.

He explained that as more conservative entities set asset allocations and rebalance positions, bitcoin’s volatility may decrease, making it more attractive to traditional investors.

Diversification and healthy turnover

Zheng also suggested that some early whales are diversifying into other growth sectors, such as artificial intelligence.

He likened the process to selling property after long-term ownership, noting that asset turnover does not diminish underlying value.