There was an extended period of time in bitcoin’s younger years that the cryptocurrency was largely viewed as too volatile to be a buy-and-hold investment. However, it was considered to be a great short-term trading vehicle for market participants with stomachs for risk.
Fast-forward to 2025 and bitcoin can still deliver big gains (or losses) in rapid fashion. But in validation of its broader investment thesis, the largest digital currency is increasingly viewed through a long-term lens. That’s constructive for ETFs such as the Coinshares Valkyrie Bitcoin Fund (BRRR). That’s because that shifting perspective indicates more investors are willing to display “diamond hands” and stick with bitcoin rather than be shaken out at the first sign of weakness.
ETFs like BRRR may have bolstered the case for bitcoin as a long-term holding. Spot bitcoin ETFs have made that objective easier for a broader investor base. And they increased access to an asset class that many market participants were previously skittish toward.
Bitcoin, BRRR for the Long Term
Data confirms that more investors aren’t fiddling with bitcoin for fast gains. Nor are they running for the hills amid pullbacks.
“Looking at ownership trends over the past decade, the number of investors holding Bitcoin for 155 days or more is now at its highest level since 2015,” according to CoinShares research. [“The motivations for holding Bitcoin back then differed from today’s. But the broader trend suggests investors are increasingly adopting a long-term holding approach. They’re] treating Bitcoin more as a store of value. Currently, more than 74% of investors hold their Bitcoin for over 155 days.”
The amount of bitcoin on cryptocurrency exchanges peaked several years ago. That’s more confirmation HODLers are holding.
“Over the same period, the share of Bitcoin held on exchanges peaked at 18% of total supply in June 2022 (3.45 million BTC, valued at US$383 billion),” added CoinShares. “This has since declined to just 14%, marking a 16.6% reduction and removing roughly US$65 billion from exchange holdings. Similarly, the volume of Bitcoin held in OTC desk wallets has fallen to near zero.”
Interestingly, the volume of bitcoin exchange traded products, including ETFs such a BRRR, is rising. That’s a positive for bitcoin at large.
“We believe this shift does not undermine the Bitcoin network [itself. Rather, we think it] reflects a diversification in trading mechanisms beyond centralised crypto exchanges,” concluded CoinShares.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
