Crypto: Bitcoin 2026 Etf Sell-off Is 'purification' Of BTC Bull Case: Analysis

Bitcoin ETF investors joined an "institutional exit" this year, but analysis sees a new phase of bullish involvement from bigger players coming next.

Bitcoin (BTC) will see “purification” as a new wave of institutional money stays long BTC for decades, says EMJ Capital founder Eric Jackson.

BTC has become a “high-beta tech position,” thanks to ETFs and institutional involvement.

Bitcoin ETF sellers will give way to longer-term institutional buyers, analysis predicts.

Stablecoin supply needs to recover to upend the bearish trend.

In an X post on Tuesday, Jackson predicted more stable BTC price strength in the future despite the current institutional exodus.

“BTC didn't fail as an asset. It succeeded as an ETF. And that's the problem,” he summarized.

The US spot Bitcoin exchange-traded funds (ETFs) continue to see regular net outflows, compounding already weak price action and underscoring Bitcoin’s bearish trend change that hit in October 2025.

Jackson notes that currently, Bitcoin moves in lockstep with BlackRock’s iShares Expanded Tech-Software Sector ETF (IGV). BlackRock also runs the world’s largest spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT).

“From $126K to $63K. Every time IGV sells off, BTC sells off with it. That's not a store of value. That's a high-beta tech position with a different logo,” he continued.

Source: CoinTelegraph