Jane Street Cuts Bitcoin ETF Holdings, Doubles Down on Ether Investments
By John Nada·May 13, 2026·5 min read
Jane Street slashes its Bitcoin ETF holdings while increasing investments in Ether funds, reflecting a strategic shift in institutional sentiment.
In a significant shift, Wall Street market maker Jane Street has reduced its stake in Bitcoin exchange-traded funds (ETFs) while increasing its investments in Ether funds during the first quarter of 2026. According to a 13F filing, Jane Street cut its holdings in major Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund, indicating a strategic pivot amidst evolving market dynamics.
Specifically, the firm's holdings in the iShares Bitcoin Trust fell by approximately 71% from the previous quarter, dropping to about 5.9 million shares valued at around $225 million. Meanwhile, the Fidelity Wise Origin Bitcoin Fund saw a reduction of about 60%, bringing its holdings to roughly 2 million shares worth about $115 million. This movement marks a considerable withdrawal from Bitcoin investments, especially considering the firm’s previous bullish stance.
In contrast, Jane Street nearly doubled its position in BlackRock’s iShares Ethereum Trust, significantly increasing its stake in the Fidelity Ethereum Fund as well, reflecting a notable trend towards Ether among institutional investors. The firm added about $82 million combined across these two Ether products over the quarter, signaling a robust confidence in Ethereum's potential despite the volatility seen in the broader crypto market.
This strategic reshuffling aligns with early indicators of increased institutional interest in Ether ETFs, as evidenced by similar moves reported by Wells Fargo. The 13F disclosures, while not revealing the entirety of Jane Street's trading activities, suggest a calculated response to market conditions, particularly as Bitcoin exposure weakened further. The pivot from Bitcoin to Ether could signify a broader trend where institutional investors are recognizing the evolving landscape of digital assets and adjusting their portfolios accordingly.
Jane Street also reduced its stake in Michael Saylor’s Strategy, indicating a broader reconsideration of Bitcoin-linked assets. In Q4 2025, the firm held about 968,000 shares of MSTR worth roughly $145.9 million. By Q1 2026, this stake fell to about 210,000 shares valued at roughly $27 million, a staggering decline of about 78% quarter-over-quarter. This significant decrease in exposure to MSTR, a prominent player in the Bitcoin ecosystem, further underscores Jane Street's strategic withdrawal from Bitcoin-related investments.
Moreover, the firm also trimmed exposure across several Bitcoin mining stocks, including IREN, Cipher Mining, TeraWulf, and Core Scientific. These reductions illustrate a cautious approach as Jane Street reassesses its positions within a sector marked by instability and regulatory scrutiny.
Despite the overall decline in Bitcoin-related assets, Jane Street’s strategies reflect a nuanced understanding of the crypto market landscape. Their record $16.1 billion in trading revenue for Q1 2026 underscores the firm's ability to capitalize on volatility and emerging opportunities, particularly in artificial intelligence-related sectors. This financial performance not only highlights Jane Street's adept trading strategies but also suggests that even amid a downturn in Bitcoin investments, the firm is capable of leveraging other sectors to achieve significant gains.
In a notable twist, while scaling back on Bitcoin, Jane Street has selectively increased its investments in several crypto-related equities, including Riot Platforms, Coinbase, and Galaxy Digital. For instance, the firm raised its stake in Riot Platforms to about 7.4 million shares, increasing its value from approximately $63 million to roughly $91 million. The increased investment in Riot Platforms, a leading crypto mining company, suggests that Jane Street sees potential in companies that can adapt and thrive in the current market environment.
Additionally, Jane Street increased its position in Coinbase to about 888,000 shares from 778,000, with the value rising to about $155 million from $176 million in the prior quarter. This move indicates that the firm continues to recognize Coinbase's role as a significant player in the cryptocurrency exchange landscape, despite the challenges faced by the industry.
Galaxy Digital experienced the most significant expansion, with shares rising from approximately 17,000 to about 1.5 million, showcasing a targeted approach rather than a wholesale exit from the crypto sector. The investment in Galaxy Digital, a prominent cryptocurrency and blockchain financial services firm, suggests Jane Street's commitment to strategically positioning itself within the evolving digital asset ecosystem.
The firm's pivot from Bitcoin ETFs to Ether ETFs may also signal a shift in the broader landscape of institutional investment in cryptocurrencies. As Ether continues to gain traction among institutional players, Jane Street's moves may reflect a growing acknowledgment of the asset's potential for long-term growth and stability. This trend is further supported by reports of increased exposure among other institutions, such as Wells Fargo, which highlights a collective movement towards Ether as a viable alternative to Bitcoin.
As the market continues to evolve, these decisions will likely influence broader trends within the financial system, particularly as regulatory frameworks surrounding digital assets become clearer. Institutional movements such as these may set the stage for increased acceptance and integration of cryptocurrencies as a legitimate asset class in mainstream finance. Moreover, as regulatory clarity improves, it could pave the way for more institutional products and investment vehicles centered around cryptocurrencies, thereby enhancing market liquidity and participation.