Jane Street, the world’s most profitable quantitative and high-frequency trading (HFT) firm, has dumped Bitcoin [BTC] in favor of Ethereum [ETH].
According to the 13F filing with the SEC, the trading giant slashed its exposure to BlackRock Bitcoin ETF (IBIT) by 71% in Q1. Similarly, it divested 60% and 86% of its holdings in Fidelity’s and Grayscale’s BTC products.
In other words, it closed over three-quarters of its overall BTC ETF exposure. The firm also retreated from Strategy’s MSTR, with holdings dropping from 968K shares in Q4 2025 to 210K shares in Q1 2026.
In contrast, Jane Street nearly doubled its ETH exposure to $82 million via BlackRock’s iShares Ethereum Trust and Fidelity fund (FETH).
Is Jane Street’s retreat bullish for BTC?
Commenting on Jane Street’s reallocation, Jeff Park, Bitwise advisor, said,
Jane Street slashed its Bitcoin exposure in Q1 2026, cutting IBIT 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 Q1 2026, Jane Street was sued for market manipulation, and the crypto community widely speculated that it was also responsible for the infamous 10 AM BTC dumps.
Coincidentally, BTC edged higher immediately after the lawsuit, further reinforcing the speculation that the firm was holding back the price from rallying.
That said, the broader BTC price action has shown close correlation with U.S. Spot BTC ETF flows. The recovery from $60K to over $80K was marked by steady inflows.
However, on Wednesday, the daily outflows hit $88M, the highest since mid-February. This coincided with confirmation of Kevin Warsh as the next Fed chair. But it sharply dragged BTC from $81K to a low of $78.7K.
AMBCrypto had previously marked out the $81K-$82K zone as a key pivotal point amid the typical summer lull. Swissblock analysts reinforced the same, noting that the uptrend momentum could extend only if BTC doesn’t break below $76K.
As long as BTC does not break $76.2K–$76.8K, the bullish structure remains intact. Hold that zone, and Bitcoin keeps room to expand the structure higher.
Final Summary
- Jane Street slashed its BTC exposure by over 60%-90% across BlackRock, Grayscale, Fidelity, and VanEck BTC ETFs in Q1.
- Following the recent investigation into the firm for market manipulation, analyst Jeff Park billed the reduced exposure as bullish for BTC.