Analysts Dismiss Jane Street “10 a.m.” Bitcoin‑Dump Claims as Spot Bitcoin ETF Flows Surge
By [Your Name] – Crypto‑News Desk
February 2026 – A wave of speculation that quantitative trader Jane Street was deliberately depressing Bitcoin prices each morning has faded under the weight of market data and expert commentary. At the same time, investor appetite for spot Bitcoin exchange‑traded funds (ETFs) has rebounded, with more than $1 billion poured into U.S.‑listed products over a three‑day stretch this week.
The Origin of the “10 a.m. Dump” Narrative
The rumor began after a court‑appointed administrator of Terraform Labs filed a lawsuit against Jane Street, alleging that the firm engaged in insider trading that accelerated the collapse of Terra’s algorithmic stablecoins in May 2022. Social‑media posts quickly linked the legal action to a supposed “10 a.m. Bitcoin dump” – a daily, programmatic sell‑off timed to the opening of the U.S. markets.
Crypto influencer Justin Bechler argued that Jane Street’s sizeable holding of BlackRock’s iShares Bitcoin Trust (IBIT) could be offset by hidden short positions, allowing the firm to push Bitcoin lower and buy the ETF at a discount. He contended that the public 13‑F filing, which lists a $790 million stake in IBIT, does not reveal hedging or derivative exposure that could turn the position into a net short.
Why Analysts Say the Claim Doesn’t Hold Up
Data lack a repeatable pattern.
Julio Moreno, head of research at on‑chain analytics firm CryptoQuant, noted that the price action around the 10 a.m. window shows no consistent, repeatable decline that would point to a single market participant driving the move. “A one‑minute dip is easily obscured by normal market volatility,” he wrote on X.
The strategy is common, not unique.
Moreno also explained that buying spot Bitcoin while simultaneously holding short futures or options is a typical delta‑neutral approach used by many funds to capture the spread between spot and derivative markets. The practice is not inherently manipulative; it merely reflects attempts to manage exposure.
Jane Street’s disclosed holdings suggest a broader exposure.
The latest 13‑F filing shows that, beyond the IBIT shares, Jane Street holds stakes in several Bitcoin‑mining companies—including Bitfarms, Cipher Mining and Hut 8—indicating a diversified exposure to the asset that would be at odds with an aggressive short‑selling stance.
Regulatory transparency limits detection.
Current disclosure rules require reporting of positions in listed securities such as IBIT but do not mandate a breakdown of offsetting derivatives. This creates a “black‑box” effect that fuels speculation, yet the absence of evidence of coordinated, large‑scale sell‑offs weakens the manipulation hypothesis.
Spot Bitcoin ETF Flows Counter the Negative Narrative
While the manipulation chatter lingered, investor demand for regulated Bitcoin exposure surged. Data compiled by Farside Investors recorded a cumulative $1.0 billion inflow into U.S. spot Bitcoin ETFs over three consecutive days, with $254 million added on Thursday alone. The inflows followed a five‑week streak of net outflows, suggesting a renewed confidence among institutional and retail investors in the legitimacy and liquidity of approved Bitcoin products.
The renewed interest arrives as the SEC continues to review additional spot Bitcoin ETF applications. A sustained flow into existing products could pressure the regulator to grant approvals to pending proposals, potentially expanding the market size and deepening the liquidity pool.
Broader Market Context
The week’s headlines were not limited to Bitcoin. Corporate Ether treasuries, notably those of Bitmine Immersion Technologies, reported paper losses approaching $8.8 billion as ETH traded well below the firm’s average acquisition cost. Meanwhile, DeFi platforms such as Aave announced the crossing of $1 trillion in cumulative lending volume, underscoring the continued diversification of crypto‑related assets despite price volatility in the top‑tier tokens.
Key Takeaways
| Takeaway | Implication |
|---|---|
| Allegations of a coordinated “10 a.m. dump” lack empirical support. | Market participants and regulators are unlikely to pursue enforcement actions based solely on price‑timing speculation. |
| Jane Street’s filing shows exposure to both Bitcoin and mining equities, not a pure short bias. | The firm’s overall market view appears balanced rather than contrarian. |
| Spot Bitcoin ETF inflows have rebounded, exceeding $1 billion in three days. | Renewed investor confidence may expedite the SEC’s pending ETF approvals and encourage further capital allocation to regulated crypto products. |
| Crypto markets remain fragmented: while Bitcoin ETFs attract inflows, Ether‑focused corporate treasuries face significant unrealized losses. | Asset‑specific risk assessments remain critical; diversification across crypto‑related instruments continues to be a prudent strategy. |
| On‑chain analytics and transparent filing requirements are essential to dispel misinformation. | Greater data visibility can help market actors differentiate between legitimate trading strategies and manipulative conduct. |
Outlook
The convergence of strong ETF demand and the absence of concrete evidence for market manipulation suggests that Bitcoin’s price trajectory will be driven more by macro‑economic factors and regulatory developments than by alleged single‑firm tactics. As the SEC’s review process advances and more institutional products emerge, the market is likely to see a gradual shift from rumor‑driven volatility to a more stable, institutional‑anchored price discovery mechanism.
For continued coverage of crypto market dynamics, stay tuned to our daily briefs.
Source: https://cointelegraph.com/news/analysts-reject-jane-street-dump-claims-bitcoin-etf-inflows-finance-redefined?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
