In a notable shift in its investment strategy, Jane Street has drastically reduced its holdings in Bitcoin exchange-traded funds (ETFs) during the first quarter of 2026, redirecting significant capital towards Ether funds. The Wall Street market maker's bold repositioning highlights the evolving landscape of institutional cryptocurrency investments.
According to a recently released 13F filing, Jane Street slashed its stakes in major Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC). The firm cut its IBIT holdings by approximately 71%, reducing its share count to around 5.9 million, valued at about $225 million, and decreased its FBTC position by roughly 60% to around 2 million shares, worth about $115 million. This marked a significant downsizing of its Bitcoin exposure as the market faces increased scrutiny.
In sharp contrast, Jane Street significantly ramped up its investment in Ether (ETH) ETFs, nearly doubling its position in BlackRock's iShares Ethereum Trust (ETHA) and increasing its stake in Fidelity's Ethereum Fund (FETH). Over the quarter, the firm added over $82 million combined across these two Ether products, responding to early signals of institutional interest in Ether ETFs, notably from firms like Wells Fargo.
Further compounding the changes in its crypto investment strategy, Jane Street decreased its holdings in Michael Saylor's Strategy (MSTR), reducing its stake from about 968,000 shares worth approximately $145.9 million at the end of 2025 to around 210,000 shares valued at $27 million—an alarming decline of about 78% quarter-over-quarter. This rapid exit follows a 473% increase in its MSTR position in the prior quarter, underscoring a stark shift in risk appetite as headwinds in the Bitcoin market persist.
Despite the broader downturn in Bitcoin-related assets, Jane Street displayed a nuanced approach by increasing its exposure to selected crypto equities. The firm raised its stake in crypto mining company Riot Platforms (RIOT) from 5 million to approximately 7.4 million shares, boosting its investment’s value from $63 million to around $91 million. Moreover, its position in Coinbase (COIN) also saw an increase, climbing to about 888,000 shares and a valuation of $155 million, although a very slight change from the previous quarter.
Notably, Galaxy Digital (GLXY) experienced the most substantial shift, with Jane Street expanding its holdings from a mere 17,000 shares to about 1.5 million, elevating the investment's value to roughly $28 million from around $380,000, indicating potential confidence in the diversified crypto sector beyond Bitcoin.
As Jane Street navigates these turbulent waters of cryptocurrency investment, the firm's latest moves coincide with record trading revenues of $16.1 billion for the first quarter, attributed partially to volatility and gains linked to artificial intelligence investments.
With the cryptocurrency market continuously evolving, Jane Street’s strategic pivot may resonate as a bellwether for institutional behavior in this dynamic landscape.
Source: CoinTelegraph Bitcoin