While the role of institutional investments in the cryptocurrency industry was being discussed, Jeff Park, head of Alpha Strategies at Bitwise Asset Management, drew attention to the structural reasons behind the Bitcoin price remaining below certain levels. Despite the increasing interest in Bitcoin ETFs as of 2026, the break in prices does not occur at the expected level.
Structural Disruptions and ETF Mechanism
According to Jeff Park’s analysis, current regulations on exchange-traded funds in the US give institutional players flexibility in certain transactions. In this period, called the “gray window” in the ETF market, market makers and authorized participants can offset their risks through futures transactions instead of purchasing the underlying digital asset directly. Since this process replaces purchases that would normally be made from the spot market, a direct relationship cannot be established between price formation and investments in the ETF.
Corporate Dominance in Market Dynamics
Park pointed out that large financial institutions, especially Jane Street, are exempt from certain sales bans of the U.S. Securities and Exchange Commission. Such transactions carried out during the gray window period provide a more conditional balance rather than creating an instant “demand” effect in the market. This model works differently than the “buying the dip” behavior of individual investors and prevents large institutional capital flowing into ETFs from creating a strong price jump in the market.
The Bitwise executive stated that this transaction structure keeps the impact of extraordinary capital flows in check. Although hundreds of millions of dollars of new investments come to US-based Bitcoin ETFs on a weekly basis, it is observed that the cryptocurrency is having difficulty in overcoming psychological resistance points.
Transition to the Corporate Era and Effects on Market Cycles
In 2026, the sector’s maturing corporate ecosystem causes the traditional “four-year cycle” concept to lose its effect. Grayscale Research’s latest analysis highlights the integration of digital assets with traditional financial institutions and the beginning of the “institutional age.” It is reported that during this period, market movements were determined by macroeconomic demands rather than original crypto news.
Despite the current price squeeze, optimism remains optimistic about the diversification of the participant base in the long term. Major banks in the industry, such as Morgan Stanley and Bank of America, have recently expanded access to Bitcoin ETFs for their wealthy clients. These steps highlight the expectation that the size of assets under management may reach significant levels in the sector by the end of the year.
Jeff Park argued that without fundamental reforms to ETF redemption mechanisms and authorized participant incentives, Bitcoin’s true value could remain hidden due to corporate hedging.
Once asset management companies and pension funds complete their control processes through platforms, new capital entering the sector has the potential to overcome existing structural problems.
