Jane Street, a top global market maker, disclosed a massive purchase of 20.6 million shares in BlackRock's iShares Silver Trust (SLV) in Q4 2024, making it the fund's largest holder. Shortly after the position was revealed in late February, silver prices plunged nearly 30% from a local high, wiping out over $1.4 trillion in market value globally. The timing has sparked intense speculation about possible market manipulation.
Who Is Jane Street?
Based in New York, Jane Street is a quant trading giant specializing in ETF arbitrage, commodities, and derivatives. Its business spans equities, fixed income, crypto, and raw materials. While holding large ETF positions is routine for a market maker, becoming SLV's largest holder signals a size far beyond typical hedging or market-making needs, drawing scrutiny.
Terraform Labs Alleges Insider Trading
On February 24, the bankruptcy estate of Terraform Labs filed a lawsuit against Jane Street, accusing the firm of withdrawing about $85 million in UST liquidity from Curve pools just hours before the Terra/LUNA collapse in 2022 — an alleged insider trade. Jane Street denied the claims. This is not Jane Street's first legal battle: in July 2025, Indian regulators fined the firm $540 million for alleged manipulation in derivatives markets.
The '10am Dump' Pattern Suddenly Stopped
Crypto traders have long observed a recurring sell-off in Bitcoin around 10:00 AM ET, coinciding with the US stock market open. According to analytics firm Bull Theory, this pattern — which had persisted for two months — vanished on the same day the Terraform lawsuit news broke. The timing has fueled speculation that Jane Street's algorithmic activity may have been influencing BTC price action.
The key question now is whether Jane Street's SLV holdings represent a long bet or a hedge. If it is a hedge, losses on the long position would be offset by short derivative positions. Market participants await the next 13F filing for clues.