Jane Street Pivots Away from Bitcoin ETFs, Pours $82M into Ethereum Holdings

Key Highlights

• Jane Street reduced Bitcoin ETF positions dramatically during Q1 2026, dropping BlackRock’s IBIT by 71% and Fidelity’s FBTC by 60%.
• Ethereum ETF holdings surged with approximately $82 million in new exposure, nearly doubling its BlackRock Ethereum Trust stake.
• The trading firm’s position in Michael Saylor’s Strategy plummeted roughly 78% from approximately $146 million to $27 million.
• Positions in Coinbase, Riot Platforms, and Galaxy Digital expanded significantly despite Bitcoin-related pullbacks.
• Jane Street reported record trading revenue of $16.1 billion in Q1 2026.

A prominent Wall Street trading powerhouse made a significant strategic pivot in its cryptocurrency portfolio throughout Q1 2026, dramatically reducing Bitcoin ETF positions while expanding its Ethereum fund holdings.

Based on a 13F regulatory filing released Tuesday, the trading firm reduced its holdings in BlackRock’s iShares Bitcoin Trust by approximately 71%, leaving it with roughly 5.9 million shares worth around $225 million. Meanwhile, its stake in Fidelity’s Bitcoin fund decreased by about 60% to approximately 2 million shares, valued at nearly $115 million.

Concurrently, Jane Street’s position in BlackRock’s iShares Ethereum Trust nearly doubled. The firm also substantially increased holdings in Fidelity’s Ethereum fund. Together, these two Ether ETF additions represented approximately $82 million in new capital during the quarter.

This strategic repositioning mirrors a growing institutional appetite for Ether ETFs throughout 2026, with major financial institutions such as Wells Fargo similarly expanding their exposure.

Dramatic Reduction in Strategy Holdings

The firm’s retreat from Bitcoin-correlated investments went well beyond traditional ETF products. Its holdings in Strategy, Michael Saylor’s company known for substantial Bitcoin treasury reserves, contracted from approximately 968,000 shares in Q4 2025 to roughly 210,000 shares by Q1 2026’s conclusion.

This represents a dramatic 78% quarter-over-quarter decline, reducing the position’s value from nearly $146 million to approximately $27 million.

The downsizing is particularly notable given the previous quarter’s accumulation pattern. Jane Street had boosted its Strategy position by roughly 473% during Q4 2025.

Additionally, the firm reduced exposure to multiple Bitcoin mining operations throughout the quarter, including IREN, Cipher Mining, TeraWulf, and Core Scientific.

Selective Expansion in Crypto Equities

Despite widespread reductions in Bitcoin-focused investments, Jane Street strategically expanded positions in select cryptocurrency-related stocks.

Riot Platforms holdings increased from approximately 5 million to around 7.4 million shares. The disclosed value of this position grew from roughly $63 million to about $91 million.

Coinbase holdings expanded from around 778,000 shares to approximately 888,000. This position was valued at roughly $155 million at quarter’s end.

The most significant expansion occurred in Galaxy Digital. Jane Street’s position surged from around 17,000 shares to roughly 1.5 million, driving the value from about $380,000 to nearly $28 million.

These strategic increases indicate the firm adopted a selective approach rather than executing a complete withdrawal from cryptocurrency-linked equities.

It bears mentioning that 13F regulatory filings exclusively reveal long positions maintained at quarter end. They don’t disclose the firm’s complete trading portfolio, short positions, or derivatives strategies.

Jane Street also delivered record trading revenue of $16.1 billion for Q1 2026, according to Reuters, propelled partly by market volatility and profits connected to artificial intelligence investments.

In separate legal developments, the firm faces litigation from the Terraform Labs bankruptcy estate, which claims Jane Street participated in insider trading related to the 2022 TerraUSD collapse. Jane Street has petitioned the court to dismiss the lawsuit.

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