DeFi Weekly: BTC ETF inflows, Jane Street claim pushback
Newsletter
Claims that a “10 a.m. Bitcoin dump” by quantitative trading firm Jane Street is suppressing prices drew scrutiny this week, as market analysts said available data does not support a consistent, entity-driven sell pattern. The allegations surfaced a day after Jane Street was sued by the court-appointed administrator of Terraform Labs over alleged insider trading linked to the May 2022 collapse of Terra’s algorithmic stablecoin ecosystem.
Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded three consecutive sessions of net inflows, breaking a five-week stretch of aggregate outflows. According to Farside Investors, US-listed spot Bitcoin ETFs saw more than $1 billion in inflows across those three days, including $254 million on Thursday.
US Spot Bitcoin ETF Flows, in USD million. Source: Farside Investors
Corporate Ether (ETH) treasuries also came under strain amid the broader market downturn. Bitmine Immersion Technologies, identified by third-party tracker Bitminetracker as a leading corporate holder of ETH, was assessed to be facing an unrealized loss of about $8.8 billion on its position as prices fell.
Analysts dispute daily “10 a.m.” Jane Street selling claims; say Bitcoin resists sustained manipulation
Crypto investors on social platforms alleged that Jane Street systematically pressured Bitcoin’s price with programmatic sales timed to the US market open. Market analysts countered that trading data does not show a persistent pattern, and said no single firm is likely to drive a prolonged bear trend in Bitcoin (BTC).
The online claims escalated following a lawsuit filed by Terraform Labs’ administrator accusing Jane Street of insider trading tied to transactions that allegedly exacerbated Terra’s collapse in May 2022.
Commentators, including influencer Justin Bechler, suggested Jane Street’s reported holdings in BlackRock’s iShares Bitcoin Trust (IBIT) could be hedged in ways not visible in public filings, potentially masking a net short position. Bechler argued that daily algorithmic selling of BTC around 10 a.m. EST could depress spot prices to accumulate the ETF at a discount. He noted that a filing reporting $790 million of IBIT shares does not indicate whether those shares are hedged via puts, offset with short futures, or structured with collars, making net exposure potentially neutral or negative under current disclosure practices.
Julio Moreno, head of research at CryptoQuant, cautioned that buying spot exposure while shorting futures is a common delta-neutral strategy used to capture basis spreads rather than express a directional view, and is not unique to a single participant. For more insights check out Julio’s Twitter.
Jane Street’s latest 13-F filing also disclosed holdings in Strategy, as well as sizable positions in Bitcoin mining companies Bitfarms, Cipher Mining and Hut 8.
Source: Julio Moreno
Vitalik Buterin moves 17,000 ETH in a month after allocating $45 million to privacy initiatives
Ethereum co-founder Vitalik Buterin reduced his tracked Ether balance by roughly 17,000 ETH over the past month after outlining plans to dedicate about $45 million worth of tokens to privacy-focused projects.
Arkham-tracked wallets associated with Buterin held about 241,000 ETH in early February. Subsequent outflows brought the combined total to approximately 224,000 ETH as of Tuesday.
The drawdown followed continued selling activity, including roughly 2,961 ETH worth $6.6 million over a three-day span earlier in the month, followed by an accelerated period in which about $7 million in tokens were sold over three days, according to on-chain analysts.
Arkham Intelligence data indicates the ETH sales were executed through the CoW Protocol decentralized exchange aggregator using multiple smaller swaps instead of a single large transaction, a tactic typically employed to minimize market impact.
Bitmine’s estimated unrealized loss approaches $8.8 billion as Ether decline challenges cyclical view
Corporate ETH treasuries are facing mounting pressure as the crypto downturn extends, with analysts warning that Ether’s valuation is approaching levels that could test whether the asset is in a cyclical lull or entering a more structural deterioration.
Bitmine Immersion Technologies, identified by Bitminetracker as one of the largest corporate holders of ETH, is estimated to be sitting on an unrealized loss of about $8.8 billion after months of price weakness. Over the last six months, ETH has fallen 60%, well below Bitmine’s average cost basis of $3,843 per token, Bitminetracker data shows.
Research firm 10x Research said Ether’s current trading range is testing key valuation and cost-basis thresholds, requiring investors to consider whether the move remains cyclical or points to more persistent structural issues.
Despite the drawdown, Bitmine has continued to add to its position. Last week, the company acquired 45,749 ETH at an average aggregate cost basis of $1,992 per ETH, signaling ongoing conviction from the world’s largest Ether treasury holder, according to the tracker.
Large Wall Street investors have maintained exposure to Bitmine. The top 11 shareholders — including Morgan Stanley, Ark Investment Management and BlackRock — increased their stakes in the fourth quarter of 2025.
Bitmine’s shares have declined about 59% over the last six months and traded at $19.68 in pre-market action on Monday, according to Google Finance.
Aave tops $1 trillion in cumulative lending volume amid institutional build-out
Decentralized finance protocol Aave surpassed $1 trillion in total historical lending volume, a first for the sector, according to the project’s team.
Aave Labs CEO Stani Kulechov said the milestone underscores Aave’s role as core infrastructure for on-chain lending and aligns with its objective to become the “largest, most efficient liquidity network,” accessible by builders, banks, and fintechs to improve liquidity and cost structures globally.
In August, Aave Labs introduced Aave Horizon, a lending market on Ethereum tailored to traditional finance firms and institutional users seeking to borrow stablecoins against real-world assets. VanEck, WisdomTree and Securitize were among the initial participants.
On Feb. 15, Kulechov said DeFi lending could benefit from tokenizing “abundance assets,” such as solar, energy-storage batteries and robotics, projecting a combined market value of $50 trillion by 2050.
Launched as ETHLend in November 2017 and rebranded to Aave in September 2018, the protocol now secures over $27.2 billion in total value locked (TVL), enabling interest on deposits and instant borrowing secured by crypto collateral.
Aave leads major DeFi lending platforms by TVL, ahead of Morpho, JustLend, SparkLend, Maple, Kamin Lend and Compound Finance, each with over $1 billion in TVL. Over the last 30 days, Aave generated more than $83.3 million in fees, nearly four times that of its next-largest competitor, Morpho.
Curve founder: DeFi must shift from token emissions to sustainable revenue
Curve Finance founder Michael Egorov said decentralized finance can no longer depend on inflationary token incentives to drive growth. In an interview published this week, he argued that protocols should prioritize generating actual revenue streams over emissions-based yields.
Egorov contrasted the current environment with the 2020 “DeFi summer,” when triple-digit and even 1,000% annualized yields attracted capital and boosted token prices, helping bootstrap TVL. He said users have since reassessed risk, and headline news no longer moves token prices in the same way.
DefiLlama data shows DeFi TVL has declined about 38% over the past six months, from $158 billion on Aug. 23, 2025, to roughly $98 billion as of Monday.
DeFi market overview
According to pricing data, most of the 100 largest cryptocurrencies by market capitalization ended the week higher.
Pippin (PIPPIN) led weekly gains among the top 100 with a 55% rise, followed by Decred (DCR) with an increase of more than 44%.
Total value locked in DeFi. Source: DefiLlama
Thank you for reading this summary of the week’s key DeFi developments. Return next Friday for additional updates, analysis and education on this rapidly evolving sector.
This article aims to provide accurate and timely information. Readers should independently verify details where appropriate. Editorial standards emphasize independence and transparency.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
