Bitcoin Core v30 Release Raises ETF Power Concerns Amid Fork Fears

The latest update to the main Bitcoin software, Bitcoin Core version 30, is set for release this weekend, raising concerns among users about the possibility of a blockchain split. The release comes amid rumors of a potential hard fork, which could lead to multiple versions of the Bitcoin blockchain. Although experts say a split is highly unlikely this time, new rules about who decides which version of Bitcoin is valid are now in focus.

Regulatory disclosures show that sponsors of U.S.-based spot bitcoin exchange-traded funds (ETFs), including BlackRock and Bitwise, have the authority to decide which blockchain fork counts as real “Bitcoin” for their products. For example, BlackRock’s $87 billion IBIT prospectus states that, in the event of a hard fork, “the Sponsor shall determine which network shall constitute the Bitcoin network and which asset shall constitute bitcoin” under the trust’s rules. The document also notes that BlackRock might not necessarily select the most valuable or largest fork.

Other ETF providers use similar language. Bitwise says it will decide in “good faith” which blockchain is considered the Bitcoin network, while ARK Investment Management specifies that unless a fork is formally acknowledged, new versions will not be included in their trust. Both ARK and Grayscale reserve the right to ignore hard-forked coins completely, holding only the version of BTC that the sponsor chooses.

ETF sponsors play a decisive role in determining which version of Bitcoin their funds will track and trade, especially during a fork. Spot ETF providers actively buy and sell bitcoin in large volumes daily. This authority means that their choice, rather than mining power or node count, could influence which chain receives the BTC ticker symbol and the inflow of billions of dollars from institutional investors and retail traders alike.

The regulatory power of these financial institutions is a result of the SEC’s approvals in January 2024, when spot bitcoin ETFs were first allowed in the U.S. This has given sponsors like BlackRock and Fidelity significant influence over the designation of BTC within major investment markets.

The v30 release itself introduces technical adjustments. It will allow multiple OP_RETURN outputs in BTC transaction mempools, which act as waiting areas for unconfirmed bitcoin transactions. The data size for these outputs will increase to 100 kilobytes, compared to the previous 83-byte limit. The change also lowers the ability for node operators to filter out large data chunks using the “datacarriersize” setting. However, Bitcoin developers state that these updates do not change the system’s consensus rules, meaning only pending transactions—not finalized blocks—are affected. Most industry watchers agree that these technical changes will not cause a blockchain fork this weekend.

The situation highlights the emerging power of ETF sponsors in future blockchain decisions, even as technical changes to Bitcoin continue. For official documents and further context, readers can review the Bitcoin Core version 30 release, the BlackRock IBIT fund prospectus (link), and similar policies from Bitwise and ARK Investment Management.

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