Analysis: The 2026 Bitcoin ETF sell-off was a "purification" process for the bull market.

PANews reported on February 24 that, according to Cointelegraph, EMJ Capital founder Eric Jackson stated that Bitcoin ETF investors are currently experiencing an "institutional exit," but this is not the end of the Bitcoin bull market, but rather a "purification" process, which will be taken over by long-term capital held for decades by sovereign wealth funds, corporate treasuries, and pension funds.

Jackson points out that since the 2021 bull market, institutions have become the "marginal buyers" in the current crypto market cycle, while retail investors have flocked to tech stocks. Bitcoin is currently falling in close tandem with the iShares Expanded Tech-Software Sector ETF (IGV), behaving more like a "high-beta tech position in a new label" than a store of value. Continued net outflows from spot Bitcoin ETFs, coupled with the Bitcoin decline since last October, have exacerbated market pessimism. However, he believes that after the weaker players are weeded out in each cycle, they are replaced by longer-term capital. The next phase will see sovereign wealth funds, corporate treasuries, and pension capital entering the market. These funds are not rebalanced quarterly, are uncorrelated with IGV, and have holding periods of decades rather than cycles. Jackson states that a recovery in stablecoin supply and the end of IGV selling pressure will be key bullish signals.