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Viewpoint: The price of Bitcoin will not be explicitly suppressed by institutions authorized to participate in ETFs, but the price discovery mechanism may be affected

Feb 26, 2026 17:22:28

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The speculation about market manipulation by Jane Street has sparked ongoing discussions about the mechanism of Bitcoin ETFs. Bitwise advisor Jeff Park stated that the question of whether Bitcoin prices are being suppressed by Jane Street is not directed at a single institution, but rather determined by the structural characteristics inherent in 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, which allows them to operate flexibly in the market, including using futures or derivatives for hedging, without having to purchase physical Bitcoin, potentially affecting the price discovery mechanism.

This gray area arises from regulatory exemptions and the SEC's approval of physical delivery. Although there is no evidence that any AP explicitly suppresses Bitcoin prices, the existing structure may alter the natural mechanisms of price formation, warranting attention from regulators and investors.

Bloomberg ETF analyst Eric Balchunas responded that this mechanism is indeed difficult to understand, and he is curious about who or what force is 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 a price suppression strategy; the key lies in how "extensive" their undisclosed trading and hedging activities are. This is a channel that brings capital costs close to zero.

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