TL;DR:
- A poll by Galaxy Digital shows nearly half of institutions are unaware or indifferent to the Core vs Knots clash.
- The debate centers on proposed Core changes to OP_RETURN data limits, opposed by Knots backers.
- Despite deep ideological rifts, institutional investors view the software conflict as a low-priority risk.
A growing debate within the Bitcoin community over which full node software should dominate, Core or Knots, is stirring technical and philosophical disagreement. Yet many institutional investors seem largely unfazed. According to a poll from Alex Thorn of Galaxy Digital, nearly half of surveyed institutions either were not aware of the Core vs Knots controversy or simply do not care. Traders managing billions are not letting the client software dispute weaken their conviction in Bitcoin’s long term value.
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
Deep Divide Over OP_RETURN, but Institutions Largely Unmoved
At the heart of the tension is Bitcoin Core’s proposed v30 upgrade, which would lift the 80 byte cap on OP_RETURN data. This has alarmed supporters of Knots, developed by Luke Dashjr, who warn the change could invite network spam and unnecessary non financial transactions. Knots advocates argue this threatens Bitcoin’s monetary integrity, while Core supporters see the change as a step toward enabling new use cases. The debate is not only technical but also philosophical, touching on Bitcoin’s purpose and limits.
Still, institutions appear to view the clash as peripheral. Thorn’s poll showed that 46 percent of firms had never heard of the disagreement, and 36 percent were neutral. Of those who did express a preference, nearly all favored Core. Thorn noted that major investors see little real world risk in the Knots argument, calling the concerns theoretical or overstated.
Part of the disconnect may stem from priorities. Capital allocators, service providers and regulators tend to focus on adoption, liquidity considerations and regulatory clarity rather than node software politics. From their perspective, the Core vs Knots disagreement remains niche and far from a market level threat.
Analysts suggest that unless the dispute escalates into a chain split, institutional adoption is unlikely to be disrupted. For now, heavyweight investors seem more focused on Bitcoin‘s role as a resilient store of value than on which implementation leads node distribution.
