View: Bitcoin Price Will Not Be Explicitly Suppressed by ETF Approval Participating Institutions, but Price Discovery Mechanism May Be Affected

February 26 — The debate over Bitcoin ETF mechanics, sparked by speculation about Jane Street’s market manipulation, continues to simmer. Bitwise advisor Jeff Park noted the question of whether Bitcoin prices were suppressed by Jane Street isn’t targeting a single institution — it’s rooted in the structural features of Bitcoin ETF architecture. Every Authorized Participant (AP) — including Jane Street Capital, JPMorgan Chase, Goldman Sachs and others — holds an exemption allowing them to create and redeem ETF shares. This lets them flexibly manage market positions (including hedging via futures or derivatives) without needing to buy actual Bitcoin, which can impact price discovery. The operational gray area stems from regulatory exemptions and SEC approval for physical delivery. While there’s no evidence any AP explicitly suppressed Bitcoin prices, the current structure could distort the natural price discovery mechanism — warranting scrutiny from regulators and investors. Bloomberg ETF analyst Eric Balchunas responded that the mechanism is indeed hard to wrap one’s head around, and he’s curious about the entities or forces behind the daily “patterned selling” that appears and vanishes abruptly. Jan3 CEO Samson Mow (whose firm focuses on Bitcoin technology) stated being an AP isn’t the only factor in a price-suppression strategy; the key is how “extensive” their undisclosed trading and hedging activities are. This is a channel that drives capital costs near zero.