Jane Street, the world’s most profitable quantitative and high-frequency trading (HFT) firm, has ditched Bitcoin [BTC] in favor of Ethereum [ETH].
According to the 13F submit along with the SEC, the trading giant cut its exposure to BlackRock Bitcoin ETF (IBIT) by 71% in the first quarter. Similarly, it has divested 60% and 86% of its holdings in Fidelity and Grayscale’s BTC products.
In other words, it closed more than three-quarters of its total BTC ETF exposure. The company also withdrew from Strategy’s MSTR, with ownership dropping from 968,000 shares in Q4 2025 to 210,000 shares in Q1 2026.
In contrast, Jane Street nearly doubled its ETH exposure to $82 million through BlackRock’s iShares Ethereum Trust and Fidelity fund (FETH).
Is Jane Street’s Retreat Bullish for BTC?
Commenting on the Jane Street relocation, Jeff Park, Bitwise advisor, said:
Jane Street reduced its exposure to Bitcoin in Q1 2026, causing IBIT to fall by ~71% and FBTC by ~60%. Price discovery is back on the menu.
This implied that Park expected the BTC price to hit a new all-time high now that Jane Street has significantly reduced exposure to the asset.
And the reasoning behind this is simple. In the first quarter of 2026, Jane Street was indicted for market manipulation, and the crypto community widely speculated that she was also responsible for the infamous BTC dumps at 10am.
Coincidentally, BTC surged higher immediately after the lawsuit, further fueling speculation that the company was holding back a rise in price.
That said, broader BTC price action has shown a close correlation with US Spot BTC ETF flows. The recovery from $60,000 to over $80,000 was characterized by steady inflows.
On Wednesday, however, daily outflows reached $88 million, the highest level since mid-February. This coincided with confirmation of Kevin Warsh as the next Fed chairman. But it sharply dragged BTC from $81K to a low of $78.7K.
AMBCrypto previously had the $81K-$82K zone as an important pivot point in the midst of the typical summer break. Swissblock analysts reinforced the same, noting that the upward momentum could only continue if BTC fails to break below $76,000.
As long as BTC does not break the $76.2K-$76.8K range, the bullish structure remains intact. Hold that zone and Bitcoin will have room to extend the structure higher.
Final summary
- Jane Street cut its BTC exposure by more than 60%-90% in the first quarter for BlackRock, Grayscale, Fidelity and VanEck BTC ETFs.
- Following the company’s recent investigation into market manipulation, analyst Jeff Park labeled the reduced exposure as bullish for BTC.