Nick Szabo: Crypto ETF outflows due to declining trust in Wall Street

Amid recent allegations that market maker Jane Street suppressed Bitcoin's price through algorithmic selling at specific times, early Bitcoin contributor and smart contract originator Nick Szabo commented on X that the firm may have a culture that fostered crypto "scammers." He also stated that the possibility it directly designed and operated some scams cannot be ruled out. Szabo suggested that Jane Street might have figured out how to exploit the structural vulnerabilities that led to the 2022 Terra-Luna collapse. He further described the firm's market-making for Bitcoin ETFs alongside its 10 a.m. sell-offs as a highly problematic conflict of interest, calling the decision by ETFs to entrust this role to Jane Street "negligent." Szabo concluded that recent crypto ETF outflows stem more from a decline in trust in Wall Street's market-making methods than from the coins themselves.