Dragonfly Dismisses Alleged 10 a.m. Bitcoin Dump to Buy BlackRock’s IBIT
Crypto posts claimed Jane Street sold Bitcoin at 10 a.m. ET open to depress prices and buy shares of BlackRock’s IBIT at a discount. Dragonfly’s Rob Hadick counters those 10 a.m. trades are hedges by ETF APs to align IBIT with NAV, with data showing Bitcoin gains.
1. Viral Dump Theory
Over the past week, social media posts alleged that Jane Street, a key authorized participant for BlackRock’s IBIT, systematically sold Bitcoin around the 10 a.m. ET open to push prices lower before acquiring IBIT shares at a discount, tying the pattern to Bitcoin’s drop from near $125,000 in October to recent lows around $62,000.
2. Hedge Function of Authorized Participants
Dragonfly General Partner Rob Hadick explains that authorized participants routinely create and redeem ETF shares by buying and selling spot Bitcoin, futures and other instruments to hedge exposure and keep IBIT’s market price aligned with its net asset value. Those risk-management trades often cluster around high-liquidity periods such as the U.S. market open.
3. Evidence Contradicts Selloff Pattern
Trade data between 10 and 10:30 a.m. ET shows Bitcoin trading higher, undermining claims of a consistent daily selloff. A related lawsuit contains redactions, leaving no public proof of coordinated manipulation or malicious intent toward IBIT pricing.