TLDR
- Jane Street reduced Bitcoin ETF positions dramatically during Q1 2026, with BlackRock’s IBIT down 71% and Fidelity’s FBTC declining 60%.
- The trading giant injected approximately $82 million into Ether ETF holdings, almost doubling its BlackRock Ethereum Trust stake.
- Holdings in Michael Saylor’s Strategy plummeted roughly 78% from approximately $146 million to $27 million quarter-over-quarter.
- Jane Street expanded its investments in Coinbase, Riot Platforms, and Galaxy Digital while reducing Bitcoin-focused holdings.
- The trading powerhouse achieved record Q1 2026 trading revenue of $16.1 billion.
Prominent Wall Street trading house Jane Street executed a significant rebalancing of its cryptocurrency portfolio throughout Q1 2026, dramatically reducing Bitcoin ETF holdings while simultaneously expanding its Ethereum fund positions.
Based on a 13F regulatory filing released Tuesday, the trading firm reduced its holdings in BlackRock’s iShares Bitcoin Trust by approximately 71%, bringing it down to roughly 5.9 million shares with a market value of around $225 million. Meanwhile, its investment in Fidelity’s Bitcoin fund experienced a roughly 60% decline, settling at approximately 2 million shares valued at nearly $115 million.
Conversely, Jane Street substantially increased its stake in BlackRock’s iShares Ethereum Trust, nearly doubling down on the position. The firm also made significant additions to Fidelity’s Ethereum fund. The combined Ether ETF acquisitions represented approximately $82 million in new capital during the quarter.
These strategic adjustments align with emerging institutional appetite for Ether ETFs throughout 2026, with major financial institutions such as Wells Fargo similarly expanding their exposure.
Strategy Stake Drops Sharply
Jane Street’s retreat from Bitcoin-correlated investments went well beyond traditional ETFs. The firm’s position in Strategy, Michael Saylor’s company known for maintaining substantial Bitcoin treasury holdings, contracted from approximately 968,000 shares during Q4 2025 to roughly 210,000 shares at Q1 2026’s conclusion.
This represents a dramatic 78% quarterly decline, shrinking the position’s value from nearly $146 million to approximately $27 million.
The reduction marks a complete reversal from the previous quarter’s strategy. Jane Street had aggressively expanded its Strategy holdings by approximately 473% throughout Q4 2025.
Additionally, the firm reduced positions across multiple Bitcoin mining operations during the period, including IREN, Cipher Mining, TeraWulf, and Core Scientific.
Gains in Coinbase, Riot, and Galaxy
Notwithstanding the sweeping reduction in Bitcoin-focused assets, Jane Street strategically increased positions in select cryptocurrency-related stocks.
Its investment in Riot Platforms expanded from approximately 5 million to around 7.4 million shares. The disclosed value of this holding increased from roughly $63 million to approximately $91 million.
Coinbase positions grew from around 778,000 shares to approximately 888,000. This stake carried a market value of roughly $155 million at quarter’s end.
The most dramatic expansion occurred with Galaxy Digital. Jane Street’s holdings surged from around 17,000 shares to approximately 1.5 million, catapulting the position’s value from about $380,000 to nearly $28 million.
These strategic increases indicate the firm pursued a selective reallocation strategy rather than executing a wholesale retreat from cryptocurrency-linked equities.
Importantly, 13F disclosures exclusively reveal long equity positions held at quarter end. They provide no visibility into the firm’s complete trading activities, short positions, or derivative contracts.
Jane Street simultaneously posted a record-breaking $16.1 billion in trading revenue during Q1 2026, according to Reuters, propelled partly by market volatility and profitable artificial intelligence sector 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 implosion. Jane Street has filed motions seeking dismissal of the lawsuit.
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