Bitcoin Core Updates: Why Institutional Investors Aren’t Losing Sleep Over Them

Bitcoin's latest protocol tweaks spark debate—but Wall Street's big players barely blink.

The Institutional Immunity Effect

While crypto Twitter erupts over consensus changes, BlackRock and Fidelity's balance sheets tell a different story. Their cold storage wallets haven't moved an inch since the last hard fork.

Decentralization Theater

Core devs debate minutiae in GitHub threads as pension funds quietly accumulate BTC through regulated ETFs. The irony? The 'threats' that terrify maximalists are precisely what compliance teams demanded.

A Cynic's Take

Maybe Satoshi should've added a 'VC panic sell' button alongside the block size parameter. Would've saved everyone the quarterly existential crisis.

TLDR

• Institutional Bitcoin investors show little concern about the ongoing Bitcoin Core vs Knots debate, according to Galaxy Digital’s Alex Thorn.
• A poll of 25 institutional investors found that most are unaware of, or indifferent to, the Bitcoin Core vs Knots controversy.
• Only 18% of respondents preferred Bitcoin Core’s stance on the issue.
• Bitcoin Core supporters argue that imposing restrictions could harm the network’s decentralization and fragmentation.
• Knots supporters fear that spam transactions could embed illegal content in the blockchain.

The ongoing debate between Bitcoin Core and Knots nodes has gained little attention from institutional Bitcoin investors, according to Alex Thorn, head of research at Galaxy Digital. Thorn recently shared the findings of a poll of 25 institutional Bitcoin investors, revealing that many are either unaware of or indifferent to the controversy. The discussion centers around the Bitcoin Core v30 update, which some claim opens the door to spam and unwanted content on the blockchain. However, this concern has not captured the attention of most investors.

More Than Half of Institutional Investors Are Unaware or Indifferent

Thorn’s poll found that 46% of institutional investors were unaware of the ongoing debate over bitcoin Core vs Knots. Another 36% expressed indifference, saying they didn’t have a strong opinion on the matter. Only 18% of the respondents expressed a preference for the Bitcoin Core stance, which supports the recent updates. Thorn noted that these results align with his broader conversations with major Bitcoin investors, miners, and government officials over recent months.

i polled more than 25 institutional bitcoin investors we work with

“where do you stand on bitcoin Core vs. bitcoin knots”

results:

1) I’m Pro-Core: 18%
2) I’m Pro-Knots: 0%
3) I don’t know / I am ambivalent: 36%
4) I haven’t heard of this at all: 46%

the knots supporters are… pic.twitter.com/fTjFntzNyl

— Alex Thorn (@intangiblecoins) November 17, 2025

“The debate is more of a theoretical concern for most in the industry,” Thorn said. “Real investors, miners, and officials don’t see this as a pressing issue.” He added that even large-scale Bitcoin miners and service providers have shown no interest in the ongoing debate.

Bitcoin Core and Knots Debate Focuses on Transaction Use Cases

The Bitcoin CORE vs Knots debate primarily revolves around the use cases for Bitcoin transactions and the potential exclusion of non-financial transactions. Supporters of Knots nodes argue that Bitcoin’s blockchain should filter out certain types of “spam” transactions. These supporters worry that without filtering, bad actors could use the blockchain to embed illegal or immoral content.

On the other hand, Bitcoin Core proponents argue that introducing restrictions could fragment the network and confuse users. They emphasize the importance of maintaining Bitcoin’s decentralized and permissionless nature. Bitcoin Core developers believe that implementing restrictions WOULD contradict the network’s key principles, which are crucial to its growth and adoption.

Institutional Investors Remain Unmoved by the Debate

Despite the ongoing debate, institutional investors seem largely uninterested in the controversy surrounding Bitcoin Core. Thorn stated that even those directly involved in the Bitcoin industry, including service providers and government officials, have shown little concern. He emphasized that, according to his findings, the debate over Bitcoin Core and Knots is primarily seen as a hypothetical issue.

“Most of the individuals I spoke with are not following this debate at all,” Thorn said. He also pointed out that concerns about Bitcoin’s legitimacy and security, such as those raised during earlier debates over decentralized systems, had already been addressed years ago. Thorn indicated that, to most investors, the Bitcoin Core vs Knots issue is not a pressing matter.

Thorn outlined three possible outcomes for the ongoing Bitcoin Core vs Knots debate. The first and most likely outcome, he said, is that the controversy fades into obscurity, as most investors and stakeholders remain unconcerned.