Jane Street Pivots from Bitcoin to Ethereum ETFs in First Quarter 2026
Major market maker Jane Street dramatically reduced Bitcoin ETF positions during Q1 2026, slashing IBIT and FBTC holdings while boosting Ether ETF investments by at least $82 million.
Prominent Wall Street market maker Jane Street decreased its Bitcoin exchange-traded fund (ETF) positions during the opening quarter of 2026 while simultaneously expanding its holdings in Ether-based investment vehicles.
The firm significantly reduced its positions in key Bitcoin ETF products throughout Q1 2026, such as BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), as revealed in a 13F regulatory filing made public on Tuesday.
The company's IBIT position declined approximately 71% compared to Q4 2025, dropping to roughly 5.9 million shares with a market value of about $225 million, whereas FBTC experienced a reduction of about 60% to around 2 million shares valued at roughly $115 million.
Simultaneously, Jane Street expanded its holdings in Ether (ETH) ETF products, almost doubling its investment in BlackRock's iShares Ethereum Trust (ETHA) while dramatically increasing its position in Fidelity Ethereum Fund (FETH), collectively adding about $82 million across both investment vehicles during the quarter.
This strategic shift occurs against a backdrop of emerging institutional interest in Ether ETF purchases during early 2026, with increased holdings also disclosed at Wells Fargo. The regulatory filing reveals a rebalancing of Jane Street's publicly reportable cryptocurrency-related positions at the end of the quarter, although 13F filings do not reveal the market maker's complete trading portfolio or net market exposure.
Bitcoin exposure weakens further as Strategy stake falls
The firm's Bitcoin-related market exposure deteriorated even more during Q1 2026 as the company decreased its investment in Michael Saylor's Strategy (MSTR) in addition to significant ETF position reductions.
During Q4 2025, Jane Street maintained approximately 968,000 MSTR shares with a market value of roughly $145.9 million. By the conclusion of Q1 2026, the common equity position had contracted to about 210,000 shares valued at roughly $27 million, representing a decline of about 78% on a quarter-over-quarter basis.
The Strategy divestment came after substantial acquisitions in the preceding quarter as Jane Street reportedly expanded its MSTR position by 473% in Q4 2025.
Throughout Q1 2026, the firm also decreased its holdings across multiple Bitcoin mining equities, including IREN, Cipher Mining, TeraWulf and Core Scientific.
Increased exposure to Coinbase, Galaxy and Riot
Notwithstanding widespread selling pressure on Bitcoin-associated assets, Jane Street expanded its holdings in several cryptocurrency-related equities during the quarter, indicating more targeted positioning in crypto-linked stocks rather than a comprehensive sector withdrawal.
The market maker elevated its investment in crypto mining operation Riot Platforms (RIOT) to about 7.4 million shares, climbing from 5 million, with its market value expanding to roughly $91 million from $63 million.
The firm also expanded its holdings in Coinbase (COIN) to about 888,000 shares from 778,000, though the position value decreased to about $155 million from $176 million in the previous quarter.
Galaxy Digital (GLXY) experienced the most dramatic growth, surging to about 1.5 million shares from just around 17,000, with its market value climbing to roughly $28 million from around $380,000.
Jane Street reported a record $16.1 billion in Q1 trading revenue, according to Reuters, as turbulent market conditions and profits connected to artificial intelligence-related investments strengthened financial performance.