A sharp rally in Bitcoin has renewed scrutiny of how spot Bitcoin exchange-traded funds function, after online speculation linked the price move to legal action involving trading firm Jane Street, according to reporting cited by Decrypt.
Posts on X suggested Bitcoin’s two-day surge coincided with a change in intraday selling patterns. Analysts say the claims reflect a misunderstanding of ETF mechanics rather than evidence of manipulation.
Jane Street Speculation Renews Scrutiny of Bitcoin ETF Market Mechanicshttps://t.co/0GuSdWrscw
— Decrypt (@DecryptMedia) February 26, 2026
ETF specialists note that authorized participants can create and redeem ETF shares without immediately buying or selling Bitcoin on public exchanges. Jeff Park of ProCap, an adviser to Bitwise, said regulatory exemptions allow institutional traders to hedge exposure using derivatives, delaying direct spot market impact.
Ryan McMillin of Merkle Tree Capital added that futures-based hedging can mute rallies and later amplify volatility when positions unwind. Analysts stressed the activity is legal and highlights how institutional trading increasingly drives Bitcoin price discovery, rather than retail spot markets alone.
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