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According to Cointelegraph, EMJ Capital founder Eric Jackson published an analysis on Tuesday, February 24, 2026, arguing that ongoing Bitcoin ETF outflows represent a structural rotation rather than a breakdown of the asset's investment case. Jackson made the argument in a post on X, contending that Bitcoin has been temporarily transformed into a "high-beta tech position" due to its correlation with BlackRock's iShares Expanded Tech-Software Sector ETF (IGV).

Jackson observed that Bitcoin's price fell from $126,000 to approximately $63,000 — declining in near-lockstep with IGV. He attributed this behavior to the nature of the current ETF holder base, which he described as short-duration allocators prone to quarterly rebalancing. "IBIT changed who owns Bitcoin," he wrote, identifying the iShares Bitcoin Trust as the vehicle that brought a different type of investor into the asset. Farside Investors data cited in the report showed Monday's net Bitcoin ETF outflows exceeded $200 million.

The framing Jackson offers runs against a straightforward bearish reading of current flow data. CoinDesk reported in January 2026 that US-listed spot Bitcoin ETFs posted their worst two-month stretch since launch, with $4.57 billion in net outflows across November and December 2025 alone. Bitcoin's price fell 20% during that window.

Yet Jackson's argument is that each major Bitcoin cycle has followed a similar script: retail investors exited at $20,000 in 2017, funds sold at $69,000 in 2021, and ETF allocators are now selling near $63,000 in 2025. In his view, what replaces each wave of sellers is longer-duration capital. The specific buyers he expects next — sovereign wealth funds, corporate treasuries, and pension capital — are holders that do not rebalance on quarterly schedules or correlate to equity sector indices. We previously analyzed 100 reasons supporting Bitcoin national reserve adoption, a trend that Jackson's thesis depends on accelerating in coming years.

The data supporting a counter-thesis is not thin. According to The Coin Republic, hedge funds turned net long on Bitcoin during the week of February 16–20 despite $316 million in ETF outflows — the most aggressive long positioning since the April 2025 correction. Derivatives traders expanded bullish bets even as ETF investors trimmed exposure, suggesting that institutional actors are differentiating between short-term liquidity management and directional conviction.

Still, the outflow trend is sustained and measurable. CoinShares data cited by multiple outlets shows five consecutive weeks of outflows from digital asset investment products through the week ending February 23, 2026, totaling $288 million in the most recent week alone. Bitcoin funds accounted for $215 million of that figure. Gold, by contrast, attracted $16 billion in inflows over the preceding three months, drawing capital away from risk assets during the same period.

Jackson's thesis hinges on one forward-looking condition: a new category of institutional buyer that has not yet entered in scale. Until stablecoin supply on exchanges recovers and ETF sell pressure from IGV-correlated allocators subsides, he acknowledged the bearish trend remains intact. Whether the next buyer cohort arrives on the timeline he describes will depend largely on how sovereign wealth and pension mandates evolve toward Bitcoin in 2026 and beyond.