Share
A 13F SEC filing disclosure has reignited a persistent theory in crypto circles: that Jane Street, one of Wall Street’s most powerful quantitative trading firms, is deliberately pushing Bitcoin prices lower around 10am EST each trading day, then buying back at a discount. The theory remains unverified, but it gained renewed momentum after the firm’s latest filing for the period ending December 31, 2025. It showed that Jane Street added 7,105,206 shares of BlackRock’s iShares Bitcoin Trust (IBIT) in Q4 2025, bringing its reported position to 20,315,780 shares worth approximately $790 million.
The rumor:
At 10am ET, large trading desks sell $BTC and related ETF shares.
This creates panic → triggers liquidations of leveraged longs → and exploits thin liquidity pockets
Then they buy back lower (rinse, repeat).https://t.co/bcY5L9Wc9q
— Milk Road (@MilkRoad) February 17, 2026
On February 17, 2026, Milk Road amplified what it described as “persistent whispers” about certain institutional trading desks running a coordinated playbook. The account named Jane Street specifically, outlining the alleged pattern: large sell volumes hit Bitcoin and related ETF shares at the U.S. equity market open, creating panic and triggering liquidations of leveraged longs by exploiting thin liquidity pockets. The same firms then reportedly buy back at lower prices. Milk Road noted the pattern “was apparently visible quite clearly during early November 2025,” with similar activity observed in Q2 and Q3, continuing into early 2026, while explicitly stressing: “to clarify – these are all unverified rumors doing the rounds in the community.”
There have been persistent whispers in crypto circles about certain institutional trading desks running a very specific/shady playbook…
(Jane Street included.)
ICYMI: Jane Street just ranked as one of the top net buyers of BlackRock's Bitcoin ETF ($IBIT) in Q4 2025.
Their… https://t.co/1nB2jcf7ub pic.twitter.com/LOnxy0AEKn
— Milk Road (@MilkRoad) February 17, 2026
The theory’s internal logic drew immediate scrutiny. CryptoQuant contributor Darkfost publicly asked how Jane Street would have accumulated Bitcoin at prices low enough to profit from selling it now, without already booking losses. Milk Road replied that the rumor assumes prior accumulation, with the firm using existing holdings to push prices lower before buying again in size, and again emphasized the claim is “totally unverified.”
In this rumor, when is Jane Street supposed to have bought large amounts of BTC so as not to be selling at a loss right now 😅
— Darkfost (@Darkfost_Coc) February 17, 2026
The sharpest rebuttal came from Louis LaValle, CEO and co-founder of Frontier Investments, who argued the viral framing fundamentally misreads what a 13F filing discloses. LaValle noted that Jane Street is a lead market maker and authorized participant (AP) for IBIT, and that its position is not a directional bet. He pointed to the “Y” flag in the filing’s options column as confirmation that the position is delta-hedged, meaning the firm is managing inventory exposure, not speculating on price direction. No regulator, exchange, or third-party data provider has confirmed coordinated selling activity tied to any firm.
This isn’t correct. You’re misinterpreting the 13F. Jane Street is a lead market maker and Authorized Participant for IBI. They aren't "holding" as a bet. The "Y" in the options column next to that $5.7B value confirms this is a delta-hedged position.
They added 7 million shares…
— Louis LaValle (@lavalle_louis) February 18, 2026
The episode illustrates a wider pattern: during sharp intraday drops, narratives attach to institutional names faster than evidence can follow.
Jane Street is designated as an authorized participant not just for IBIT, but also for Fidelity’s FBTC, WisdomTree’s BTCW, and Valkyrie’s BRRR, per SEC registration filings from 2024. As an AP, the firm facilitates the creation and redemption of ETF shares by exchanging baskets of underlying Bitcoin for new shares, and vice versa. This arbitrage mechanism keeps ETF prices aligned with Bitcoin’s spot price and provides intraday liquidity without the firm taking a directional position.
Collectively, US spot Bitcoin ETFs generated $57.7 billion in cumulative net inflows from their January 2024 debut through December 15, 2025, per Farside Investors data. That volume underscores how central AP activity is to the market’s functioning.
Whether the “10am” pattern reflects deliberate pressure or the natural volatility spike that accompanies any major equity market open remains an open question.
Share
