⁠Institutions Aren’t Concerned About the BTC Core vs. Knots Conflict, Says Galaxy Exec

The vs. Knots debate concerns modifications to the software that will be introduced in the next version of BTC Core, v30. One of these changes is the elimination of the 80-byte OP_RETURN data cap. Fans of the modification say it will make the blockchain more flexible and open up new ways to utilize it.

On the other hand, fans of Knots argue that it will allow non-financial “spam” entries, which could compromise BTC’s neutrality and security.​

Knots, which developer Luke Dashjr runs, has stricter relay rules to reduce unnecessary data transmission and maintain BTC’s focus on becoming a system. These technical and ideological differences have grown stronger, yet they don’t matter much to institutional stakeholders as a whole.​

Institutional Apathy and Priorities

A recent found that 46% of institutional investors are unaware of the Core vs. Knots dispute or don’t care about its outcome. Many asset managers, service providers, and regulatory officials believe that the software issue is merely a theoretical concern that has little impact on their BTC exposure, risk management, or strategic decisions.​

For institutions, the primary concerns are practical ones, such as liquidity, infrastructural stability, custody security, and regulatory clarity. They believe the network’s technological arguments are philosophical and that any real hazards have already been mitigated by years of community governance and technological advancements.​

Galaxy Exec’s Point of View

Alex Thorn, the Head of Research at Galaxy Digital, that the Knots camp is “making up a difficulty that doesn’t exist” when they talk about possible legal and operational risks.

Thorn says that neither market service providers nor regulators regard the Core update as a significant danger. He also says that real economic activity is still based on BTC Core as the main implementation.​

Thorn does warn that Knots proponents could cause market uncertainty if their warnings make people fear, but he doesn’t think this kind of talk would endure. He says that the discussion is very heated among developers, but institutional players don’t viewm to care much about it. They still believe in long-term value, regardless of any technical forks or node diversity that may occur.​

The Future of Network Stability

Even as Knots has proliferated in the past few years, 4,000 nodes as of August 2025, the vast majority of transaction activity, consensus infrastructure, and institutional investment remains linked to the Core project. The disagreement indicates that BTC is still struggling to strike a balance between innovation, stability, and monetary neutrality.

However, for now, institutional investors are content to watch from a distance, trusting that the mainnet’s fundamentals will prevail.