Jane Street Market Manipulation Speculation Triggers Bitcoin ETF Mechanism Debate
Speculation surrounding Jane Street sparked fresh debate over Bitcoin spot ETF trading mechanisms on February 26, as analysts and industry insiders weighed in on the fund’s operational framework.
Analysts noted that Authorized Participants (APs) can create or redeem spot ETF shares under a regulatory exemptive order framework—no immediate open-market Bitcoin buying or selling required. In scenarios like futures contango, APs may also hedge using derivatives such as futures, creating a timing mismatch between ETF fund inflows, spot market buying pressure, and short-term price movements.
Industry insiders cited in reports emphasized the mechanism is a common, legitimate ETF practice and does not directly indicate misconduct by any single institution. However, they added it reflects Bitcoin price discovery is increasingly shaped by institutional trading venues—including the futures market.
Source: Decrypt
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Two addresses collectively long 120,000 ETH, with an unrealized gain of $562.2 million
On February 26th, on-chain analyst Ai Auntie (@ai_9684xtpa) noted that two addresses have accumulated a combined 120,000 ETH in long positions, currently holding an unrealized gain of $5.622 million.
- Address 0xa5b...01d41: Holds 70,000 ETH, average entry price $1,991.53
- Address 0x6C8...D84F6: Holds 50,000 ETH, average entry price $2,012.11
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Apart from the Terraform lawsuit, Jane Street was accused of market manipulation in India last year
Public records indicate that in July 2025, India’s Securities and Exchange Board of India (SEBI) imposed an interim ban on Jane Street Group, accusing the firm of manipulating Indian indices—including the Bank Nifty—through high-frequency trading strategies.
Per SEBI’s allegations, on derivative expiration dates, Jane Street manipulated indices by purchasing underlying stocks and futures in the spot market to inflate index values, then profited from options positions (leaving small investors with unfavorable trading prices). SEBI has frozen roughly 4.843 billion Indian rupees (about $565 million) in Jane Street assets and barred the firm from trading in India’s securities market.
Jane Street has recently faced a wave of market manipulation claims:
- The court-appointed bankruptcy trustee for Terraform Labs has sued the firm in the U.S. District Court for the Southern District of New York, alleging Jane Street used non-public insider information from Terra insiders to front-run
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A fire broke out in Wenatchee, Washington, USA, possibly linked to local Bitcoin mining activity
On February 26, a fire broke out in Wenatchee, Washington, USA—suspected to be linked to local Bitcoin mining activities, per TheEnergyMag. Local fire departments have responded to the scene to handle the situation. Specific losses and casualty status have not been announced yet.
Relevant authorities are investigating the fire’s cause and whether the mining farm complies with local safety regulations. As of now, the name of the involved mining farm and the direct cause of the fire remain undisclosed.
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「Crypto Buddy」 Finally Sees Profit, Adds to Ethereum Long Position Again This Morning
February 26: Per HyperInsight monitoring, as the market staged a strong rebound, the "Buddy" contract’s position finally turned a floating profit. As of press time, its long position has a floating profit of $773,000.
Additionally, last night and this morning, "Buddy" closed its Bitcoin long position and continued to add to its Ethereum short position. It currently holds a 25x leveraged ETH short position with 6,230 coins, and a liquidation price of $1,926.
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