Jane Street Accused of Influencing Bitcoin ETF Pricing Mechanism; Analysts Say It's a Structural Issue

PANews reported on February 26, citing Decrypt, that as Bitcoin recently rebounded by about 10%, the market linked the price movement to a lawsuit involving the quantitative trading firm Jane Street, speculating that the disappearance of its selling pressure pattern pushed prices higher. Analysts pointed out that authorized participants (AP) of spot Bitcoin ETFs can hedge through futures and other derivatives when creating or redeeming shares, and may delay buying or selling BTC in the spot market during the settlement period, resulting in a lack of synchronization between ETF inflows and spot buying. Since Bitcoin futures are often in contango, APs tend to hedge with futures and earn basis profits, causing ETF scale to expand but providing limited support for spot buying, with price discovery shifting more to the futures market. Interviewed institutions emphasized that this mechanism is legal and commonly exists in the ETF industry.