Bitwise Invest Chief Investment Officer Jeff Park argues Bitcoin (CRYPTO: BTC) is not being suppressed as claimed by some on social media. The issue, in fact, lies with ETF authorized participants.
The Regulatory Carve-Out
In a detailed explanation on X, Park points out that authorized participants operate under a special exemption that allows them to short ETF shares without borrowing costs, capital requirements, or deadlines to close positions.
Any AP can create shares at will by virtue of their role in ETF creation and redemption.
This exemption isn’t unique to Jane Street.
For BlackRock’s (NASDAQ:IBIT) alone, nine firms have this power: Jane Street Capital, JPMorgan, Macquarie, Virtu Americas, Goldman Sachs, Citadel Securities, Citigroup, …