UNCERTAINTY
Over the past few days, order book sleuths have been reporting some anomalies in flows and bid/ask spreads. Yesterday, Bloomberg reported that market-making firms Jane Street Group and Jump Crypto are winding down their market-making activities in the US due to increased regulatory scrutiny. Jane Street is also scaling back its global crypto operations, while Jump Crypto is focusing on international expansion. Both firms continue to make markets in crypto but on a smaller scale. These moves explain the thin order books and abnormalities we’ve been seeing. The regulatory crackdown, which targets trading platforms, stablecoin issuers, and brokers, has also prompted several other crypto companies to consider relocating operations to international financial hubs like Dubai, Singapore, and Hong Kong.