Speculation surrounding Jane Street has reignited discussions on the trading mechanisms of Bitcoin spot ETFs. Analysts highlight that the creation and redemption of ETF shares can be executed by authorized participants (APs) under regulatory exemptions, without necessarily requiring immediate Bitcoin transactions in the open market. In scenarios of futures premium, APs may hedge using derivatives, causing a time lag between ETF inflows and spot market activity. Industry insiders note that this is a common and legal ETF operation, not indicative of misconduct by any single entity, but it underscores the growing influence of institutional trading venues, such as futures markets, on Bitcoin price discovery.
Bitcoin Spot ETF Trading Mechanism Sparks Debate Amid Jane Street Speculation
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