The Victorian government will sell millions of dollars worth of bitcoins on the open market in coming months after taking possession of assets confiscated from a Warrandyte drug dealer.

The bitcoins were seized in late 2013, but the state's Asset Confiscation Operations (ACO) had to wait until the man's case had been heard in the court system. A spokesman confirmed it has recently taken possession of 24,500 coins and would try to make the most of it.

"The Department of Justice and Regulation's ACO unit is assessing options for selling the bitcoins in this case. With the volatility in price for bitcoins, it is important that the sale of the coins on the open market is done at a time and way to get the best value," he said.

This haul was worth $32 million in late 2013, when bitcoins reached a peak of $1100 apiece, but was now worth about $9.3 million, with bitcoins selling at about $377.

Bitcoins were created in 2008 for trading within computer games and online shops, and for transferring money online. They are usually traded in fractions depending on how much money users want to transfer. An average of 136,000 coins, or $US53 million ($69 million) worth, were traded every day worldwide, according to the blockchain.info website.