BlockBeats News, February 26 — The speculation about market manipulation by Jane Street has sparked ongoing discussions about Bitcoin ETF mechanisms. Jeff Park, an advisor at Bitwise, stated that whether Bitcoin’s price is being suppressed by Jane Street is not an issue specific to a single institution but is determined by the structural features of the Bitcoin ETF framework. Each authorized participant (AP), including Jane Street Capital, JPMorgan, Goldman Sachs, and others, has the exemption to create and redeem ETF shares. This allows them to flexibly manage their positions in the market, including using futures or derivatives for hedging, without necessarily purchasing spot Bitcoin, which could influence the price discovery process. This gray area of operation stems from regulatory exemptions and SEC approval for physical delivery. Although there is no evidence that any AP is explicitly suppressing Bitcoin’s price, the existing structure may alter the natural price formation mechanism, warranting attention from regulators and investors.
Bloomberg ETF analyst Eric Balchunas responded, saying that this mechanism is indeed difficult to understand. He is curious about who or what forces are behind the “patterned sell-offs” that appear daily and then suddenly disappear. Samson Mow, CEO of Bitcoin technology company Jan3, stated that becoming an AP is not the only factor in price suppression strategies; the key is how extensive their undisclosed trading and hedging activities are. This is a channel that brings capital costs close to zero.
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