Bitcoin (BTC): Long‑term holders hold on post-2025 ETF rally

Discover why Bitcoin long‑term investors are still reluctant to sell after the late‑2025 ETF surge, how this ties into RWA tokenization like Eden RWA, and what it means for your portfolio.

• Bitcoin’s post‑ETF rally dynamics in 2026
• Drivers behind long‑term holders’ reluctance to liquidate
• The role of real‑world asset tokenization as a diversification tool

In late 2025, Bitcoin (BTC) experienced a significant rally following the approval of several spot ETF filings. The surge sent market participants scrambling for gains, yet many long‑term holders have chosen to stay put, even into 2026. This article examines the underlying motivations—psychological, financial, and regulatory—and explores how real‑world asset tokenization, exemplified by Eden RWA’s Caribbean luxury real estate platform, offers a complementary avenue for diversification.

The core question is simple: Why are seasoned holders not cashing out after a substantial rally? Understanding this decision-making process is essential for retail investors who may face similar dilemmas. We’ll explore market psychology, macro‑economic factors, and emerging asset classes that reinforce long‑term positions.

Background: Bitcoin’s ETF Journey and Market Sentiment

The introduction of spot Bitcoin ETFs in late 2025 marked a watershed moment for institutional adoption. By providing regulated exposure to BTC, these funds lowered barriers for traditional investors and amplified liquidity demands. The immediate price impact was a sharp rally that pushed BTC above $80,000 for the first time since mid‑2021.

Despite this surge, long‑term holders—often labeled “HODLers”—displayed caution. Several factors explain this behavior:

• Risk‑Aversion Post‑Rally: After a dramatic price spike, many investors fear a correction that could erode unrealized gains.
• Tax Considerations: Realizing profits triggers capital gains tax liabilities, especially in jurisdictions with high rates. Holding preserves tax efficiency.
• Diversification via RWA Tokenization: Platforms like Eden RWA provide alternative income streams and tangible asset exposure without the need to liquidate BTC.
• Regulatory Uncertainty: While ETFs are regulated, the broader crypto ecosystem still faces evolving rules that can affect exit strategies.

How It Works: From Spot ETF to Long‑Term Holding Decisions

The mechanics of an ETF’s influence on individual holdings involve several steps:

• ETF Demand Drives BTC Price: Institutional inflows into ETFs increase demand for underlying BTC, pushing prices higher.
• Price Momentum Creates Short‑Term Buying Frenzy: Retail traders often chase price momentum, amplifying volatility.
• Realisation Pressure vs. Holding Incentives: While the market may reward quick sales, holding offers potential for future upside and avoids immediate tax events.

Actors in this ecosystem include:

• Retail Investors who hold BTC directly or via ETF shares.
• ETF Fund Managers who manage inflows and outflows, influencing price stability.
• Regulators overseeing compliance and market integrity.
• RWA Platforms like Eden RWA that offer alternative investment avenues.

Market Impact & Use Cases: Diversifying with Real‑World Asset Tokenization

Tokenized real‑world assets (RWAs) convert physical or legal rights into digital tokens, enabling fractional ownership and liquidity. The primary use cases include:

• Real Estate: Villas, commercial properties, and infrastructure can be tokenized.
• Bonds & Securities: Traditional debt instruments become tradable on blockchain.
• Collectibles & Art: High‑value items receive fractional exposure.

For long‑term holders, RWAs provide:

• Income Generation: Rental income or bond coupon payments.
• Portfolio Diversification: Exposure to low correlation assets.
• Liquidity Options: Secondary markets for token resale without liquidating BTC.

Risks, Regulation & Challenges

While tokenization offers benefits, it introduces new risk vectors:

• Regulatory Uncertainty: The SEC’s stance on ERC‑20 securities and MiCA in the EU may change.
• Smart Contract Vulnerabilities: Bugs can lead to loss of funds or improper asset distribution.
• Custody & Legal Ownership: Physical asset titles must be legally linked to digital tokens; misalignment can cause disputes.
• Liquidity Risks: Secondary markets may not match primary valuations, leading to price slippage.
• KYC/AML Compliance: Platforms need robust identity verification to satisfy regulators.

Outlook & Scenarios for 2026+

The next 12–24 months could unfold in several ways:

• Bullish Scenario: Continued ETF adoption and broader institutional flow into BTC, driving prices above $90k. RWA platforms expand offerings, increasing demand for tokenized assets.
• Bearish Scenario: Regulatory crackdowns on crypto ETFs or a macro‑economic downturn pushes BTC below $50k. RWA liquidity dries up as investors focus on core holdings.
• Base Case: Bitcoin stabilizes around $70–75k, while RWAs provide steady yield streams. Long‑term holders maintain positions, using tokenized assets for diversification.

Eden RWA: A Concrete Real‑World Asset Tokenization Example

Eden RWA is an investment platform that democratizes access to French Caribbean luxury real estate—Saint‑Barthélemy, Saint‑Martin, Guadeloupe, Martinique—by combining blockchain with tangible, yield‑focused assets. Through a fractional, fully digital and transparent approach, it allows any investor to acquire ERC‑20 property tokens representing an indirect share of a dedicated SPV (SCI/SAS) owning a carefully selected luxury villa.

Key features:

• ERC‑20 Property Tokens: Each token corresponds to a proportionate ownership stake in the underlying SPV.
• Rental Income in USDC: Periodic payouts are automatically transferred to investors’ Ethereum wallets via smart contracts, ensuring transparency and timely distribution.
• Quarterly Experiential Stays: A bailiff‑certified draw selects a token holder for a free week in the villa they partially own, adding experiential value.
• DAO‑Light Governance: Token holders vote on key decisions—renovation plans, sale timing—aligning community interests with asset management.
• Future Secondary Market: A forthcoming compliant marketplace will allow token resale, providing liquidity without liquidating BTC holdings.

Eden RWA illustrates how tokenized real estate can serve as a hedge for long‑term Bitcoin investors. By earning stablecoin dividends and accessing high‑end property exposure, holders can diversify risk while preserving their core BTC positions.

To learn more about Eden RWA’s presale, visit Eden RWA Presale or explore the dedicated platform at Presale Portal. These resources provide detailed documentation and a clear pathway to participate.

Practical Takeaways

• Monitor BTC’s price trajectory post‑ETF rally for potential corrections.
• Assess tax implications of realizing gains versus holding for future upside.
• Evaluate the liquidity and regulatory status of tokenized RWAs before investing.
• Consider income streams from stablecoin payouts as a diversification tool.
• Stay informed on SEC and MiCA developments that could affect RWA offerings.
• Use DAO governance participation to influence asset decisions and protect your stake.

Mini FAQ

What is an ETF and how does it affect Bitcoin prices?

A spot Bitcoin ETF allows investors to trade BTC exposure through regulated securities, increasing demand for the underlying asset and often driving up its price during inflow periods.

How can I access tokenized real‑world assets without selling my Bitcoin?

Platforms like Eden RWA let you purchase fractional ownership of physical properties using stablecoins or other cryptocurrencies, preserving your BTC holdings while diversifying into tangible assets.

Are ERC‑20 property tokens legally equivalent to owning a share in the actual villa?

Tokens represent indirect ownership through an SPV. Legal title remains with the SPV, but token holders receive proportional rights and income based on their stake.

What are the main risks of investing in tokenized real estate?

Risks include smart contract vulnerabilities, regulatory changes, liquidity constraints, and potential misalignment between token value and underlying asset performance.

Will I need to do KYC when buying property tokens?

Yes. RWA platforms typically require thorough KYC/AML procedures to comply with securities regulations and ensure investor protection.

Conclusion

The late‑2025 ETF rally injected unprecedented liquidity into Bitcoin, yet many long‑term holders remain cautious about selling into 2026. Their reluctance stems from a blend of risk aversion, tax considerations, and emerging diversification avenues such as tokenized real‑world assets. Platforms like Eden RWA exemplify how fractional ownership of luxury Caribbean villas can provide steady income streams, experiential benefits, and governance participation—all while preserving core BTC positions.

For investors navigating this evolving landscape, balancing exposure between digital assets and tangible tokenized holdings may offer a prudent approach to capital preservation and growth. Continued monitoring of regulatory developments, ETF performance, and RWA liquidity will be essential as the market matures over the next two years.

Disclaimer

This article is for informational purposes only and does not constitute investment, legal, or tax advice. Always do your own research before making financial decisions.