crypto market, yen carry trade. Photo by BeInCrypto
Galaxy Digital completed a $9 billion Bitcoin sale for a Satoshi-era investor in July 2025, one of the largest crypto exits to date. This event marks a new era, as early adopters of Bitcoin distribute coins to meet growing institutional demand without disrupting the market.
This ongoing change marks Bitcoin’s transition to a more mature and stable market. Institutional capital now dominates as on-chain data shows dormant wallets will reactivate throughout 2025. The asset’s evolution from speculative gaming to global financial infrastructure continues to accelerate.
Bitcoin’s current consolidation resembles the post-IPO stages of traditional stocks, where early backers gradually withdraw as institutions enter.
In a Subtack article, Bitwise advisor Jeff Park describes this as a “quiet IPO,” which allows original holders to distribute Bitcoin through the ETF infrastructure. Unlike previous recessions shaped by regulation or failure, the current distribution is unfolding amid strong macroeconomic conditions and growing institutional interest.
On-chain data reflects the trend. Dormant wallets, inactive for years, began moving coins in mid-2025. For example, in October 2025, a wallet that had been inactive for three years transferred $694 million in Bitcoin, highlighting broader wallet reactivations over the course of the year.
Blockchain analytics company Bitquery has also tracked many wallets that have been inactive for over a decade, becoming active in 2024 and 2025.
It is essential that this distribution be patient and not driven by panic. Sellers target high liquidity windows and institutional partners to minimize price impact.
The Galaxy Digital transaction demonstrates this approach, where over 80,000 Bitcoins were moved during an early investor’s estate planning, all without destabilizing the market.
Historically, these consolidation phases in traditional finance last six to 18 months. Companies like Amazon and Google experienced similar periods after going public, as founders and venture capitalists gave way to long-term institutional investors.
Bitcoin’s continued consolidation since early 2025 signals a comparable shift from retail pioneers to professional asset managers.
This shift from early holders to institutions relies largely on the expansion of ETF infrastructure. Since the launch of spot Bitcoin ETFs in early 2024, institutional flows have increased.
CoinShares research reported that as of Q4 2024, investors managing more than $100 million collectively held $27.4 billion in Bitcoin ETFs, a quarterly gain of 114%. Institutional investors accounted for 26.3% of Bitcoin ETF assets, up from 21.1% the previous quarter.
Crypto adoption in North America increased by 49% in 2025, primarily driven by institutional demand and the introduction of new ETF products, according to Chainalysis. This growth is directly linked to the accessibility of cash ETFs, an option familiar to conservative investors.
However, market penetration remains early. River’s Bitcoin Adoption Report reveals that only 225 of the world’s more than 30,000 hedge funds held Bitcoin ETFs at the start of 2025, with an average allocation of just 0.2%.
This gap between interest and allocation shows how institutional integration is only just beginning. The trend nevertheless remains upward. Galaxy Digital ended the second quarter of 2025 with approximately $9 billion in combined assets under management and participation, a quarterly increase of 27%, driven in part by rising crypto prices and record Bitcoin sales. Its digital assets division generated adjusted gross profit of $318 million and trading volumes jumped 140%, as detailed in Galaxy’s financial results for the second quarter of 2025.
The crypto lending ecosystem has also grown. According to Galaxy Leverage Study, Q2 2025 saw growth of $11.43 billion, bringing total cryptocurrency-backed loans to $53.09 billion.
This quarterly increase of 27.44% signals strong demand for institutional-grade infrastructure that supports large transactions and wealth strategies.
The logic behind early exits by holders goes beyond profit-taking. Hunter Horsley, CEO of Bitwise, emphasizes that early Bitcoin investors remain optimistic but prioritize managing psychological risks after life-changing gains.
On X (Twitter), he explained that many clients aim to preserve their wealth while maintaining some exposure to Bitcoin in the long term.
Strategies include swapping spot Bitcoin for ETFs to gain custodial peace of mind, or borrowing from private banks without selling.
Others write call options for income and set price targets for partial liquidations. These approaches demonstrate intelligent wealth management and continued upside potential, not pessimism.
Bloomberg ETF analyst Eric Balchunas confirmed on X that original holders are selling real Bitcoin, not just ETF shares. He compared these early risk-takers to “The Big Short” investors, who were the first to spot opportunities and are now reaping the rewards.
As institutional ownership grows, Bitcoin’s volatility is expected to decrease, thanks to wider distribution among pension funds and investment advisors.
This promotes greater market stability and attracts additional conservative capital. As a result, Bitcoin continues to evolve from a speculative asset to a fundamental monetary tool in global finance.
