U.S.-based quantitative trading firm Jane Street disclosed Wednesday that it had sharply slashed its exposure to Bitcoin (BTC) exchange-traded funds (ETFs) in Q1 2026. In the same quarter, the firm increased its position in Ether-based ETFs.
Jane Street pivots from Bitcoin to Ethereum funds
Trading behemoth Jane Street has announced a reduction in its holdings of Bitcoin-based ETFs during Q1 2026. The firm reported a strong decline in BlackRock’s IBIT and Fidelity’s FBTC financial products.
According to the official 13F filing, Jane Street’s IBIT holdings fell to around 5.9M shares in Q4 2025, representing a pullback of over 71 percent in monetary terms. The total value of the funds is now hovering slightly above $225M.
Similarly, it dumped Fidelity’s FBTC holdings, trimming to around 2M shares, worth approximately $115M. The FBTC holdings were slashed by about 60 percent.
On the flipside, Jane Street strengthened its position in Ethereum-based ETFs, increasing its position in BlackRock’s iShares Ethereum Trust (ETHA) by almost 100 percent. The development reinforces the recent trend of replacing BTC with ETH on balance sheets.
The firm also reported a dramatic increase in its stake in the Fidelity Ethereum Fund (FETH). The filing reveals that Jane Street added a combined total of about $82M across the two products over Q1 2026.
ETH ETFs enjoying rising institutional attention
It is worth emphasizing that on Tuesday, Wells Fargo also reported an increase in its ETH exposure. The banking giant reported an increase of 63.5 percent in its ETHA holdings, now standing at 1.1M shares.
Recent ETF data suggests that ETH-focused ETFs are receiving an increasing amount of capital inflows. The following table shows that after 5 months of continual net outflows, ETH ETFs are now on track to record 2 consecutive months of net inflows.
Among individual financial products, BlackRock’s ETHA remains the most traded product, holding net assets worth $7.17B. It is followed by the Grayscale ETH ETF, which holds digital assets of around $2.08B.
Meanwhile, institutional confidence in Bitcoin appears to be taking a dent. On May 6, Strategy CEO Michael Saylor said during an earnings call that the firm may consider selling some of its BTC holdings, depending on the prevailing market conditions.