Eric Jackson, founder of EMJ Capital, described the recent Bitcoin ETF sell-off as a "purification" process rather than the end of the bull market. He noted that institutional investors are exiting, but this will pave the way for long-term capital from sovereign wealth funds, corporate treasuries, and pension funds. Jackson highlighted that since the 2021 bull market, institutions have been the "marginal buyers," while retail investors have shifted to tech stocks.
Jackson observed that Bitcoin's recent performance mirrors the iShares Expanded Tech-Software Sector ETF (IGV), suggesting it behaves more like a "high-beta tech position" than a traditional store of value. Despite continued net outflows from spot Bitcoin ETFs and a decline since last October, Jackson remains optimistic. He believes that the entry of long-term capital, uncorrelated with IGV and with holding periods spanning decades, will stabilize the market. Key bullish indicators include a recovery in stablecoin supply and the cessation of IGV selling pressure.
Bitcoin ETF Sell-Off Seen as "Purification" for Bull Market
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