Quantitative trading giant Jane Street cut its holdings in spot Bitcoin exchange-traded funds by more than $1 billion during the first quarter of 2026, rotating capital into newly launched Ether ETFs, according to a May 14 regulatory filing.
"The firm’s 13F is a photograph of one side of the balance sheet. Nobody outside the firm can see the other side," crypto analyst Justin Bechler argued, highlighting that the filing does not include shorts, options, or other derivatives that could present a different net position.
The 13F disclosure shows Jane Street’s position in BlackRock’s iShares Bitcoin Trust (IBIT) fell 71% to 5.9 million shares, valued at $225 million. Its stake in Fidelity’s FBTC dropped 60% to 2 million shares worth $115 million. In contrast, the firm added a combined $82 million to BlackRock’s and Fidelity’s Ether ETFs during the same period.
This rotation by one of Wall Street's largest market makers may influence how other institutional funds approach crypto allocations, though the incomplete nature of the disclosure complicates a clear reading. The move comes as the firm also trimmed exposure to crypto-proxy equities like MicroStrategy but increased holdings in Coinbase and Riot Platforms, suggesting a nuanced shift in its digital asset strategy.
Jane Street’s pullback from Bitcoin-linked products was broad. The firm reduced its holdings in MicroStrategy by 78% and trimmed positions in mining companies including Cipher Mining, TeraWulf, and Core Scientific.
However, not all crypto-related equities were sold. The market maker increased its stake in Riot Platforms to 7.4 million shares from 5 million and boosted its Coinbase holdings to nearly 888,000 shares. The most significant increase was in Galaxy Digital, where its position grew from 17,000 shares to roughly 1.5 million.
Market participants remain divided on the filing's implications. Bitwise advisor Jeff Park suggested the reduced Bitcoin ETF holdings mean "price discovery is back on the menu," referencing theories about the market-making activities of Authorized Participants. As a major market maker for these ETFs, Jane Street’s reported long positions are often viewed as inventory for its core business rather than a directional bet.
This article is for informational purposes only and does not constitute investment advice.
