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It has barely been a few weeks since Jane Street Capital got sued by the Terraform Labs bankruptcy administrator for allegedly engaging in insider trading and got subsequently accused of dumping Bitcoin (BTC) just when the U.S. market opens at 10 AM EST.
Related: Analyst calls Jane Street 10AM dump narrative 'wrong'
Meanwhile, the onchain analytics platform Lookonchain highlighted on March 16 that Jane Street has been actively trading Bitcoin.
In fact, latest data from Arkham Intelligence reveals that the firm has been trading Bitcoin without much disruption.
Source: Jane Street wallets trade Bitcoin, Arkham Intelligence
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While the firm received 205.36 BTC worth $15.08 million on March 16, data from the past few weeks also shows it has been trading Bitcoin all this while.
It should be noted that Jane Street is not restricted from trading Bitcoin.
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As reported earlier, the administrator overseeing the bankruptcy of Terraform Labs sued Jane Street for alleged insider trading and hastening the collapse of the crypto firm.
Terraform Labs, founded in 2018, was a popular crypto project which collapsed in 2022 when its twin cryptocurrencies, TerraUSD and LUNA, crashed. The whole fiasco led to investor losses worth an estimated $40 billion and the firm was forced to file for Chapter 11 bankruptcy in January 2024
While Jane Street called these claims "baseless, opportunistic," the crypto community claimed that a familiar pattern of Bitcoin dumping around 10 AM EST broke just when the New York firm got sued.
Many Bitcoiners had long argued that Bitcoin faces heavy selling pressure right when the U.S. market opens at 10 AM EST. The observation led to a so-called “10 AM dump” narrative gaining popularity within the crypto community.
But when Jane Street got sued for insider trading, Bitcoin didn't get dumped at 10 AM and in fact surged when the U.S. trading hours began, some members claimed.
Note that Jane Street serves as an authorized participant and liquidity provider for several U.S. spot exchange-traded funds (ETFs) linked to Bitcoin by top issuers such as BlackRock, ARK 21Shares, Fidelity, Franklin Templeton, etc.
The investment firm regularly executed coordinated algorithmic selling of Bitcoin at 10 AM EST to buy shares of these Bitcoin ETFs at a discount, claimed crypto influencer Justin Bechler.
However, CryptoQuant's research head Julio Moreno dismissed such claims and said what Jane Street was doing—buying spot and selling futures—is what every delta-neutral funds engages in as a standard practice.
Bitcoin was trading at $74,215.48 at press time, up 3.5% over the last 24 hours.
TheStreet Roundtable reached out Jane Street for comment and has not received a response as of publication. We will update the story as soon as we receive a response.
