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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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According to reports, Jane Street slashed its holdings in spot Bitcoin ETFs by 71% during the first quarter of 2026. This massive reduction, primarily affecting BlackRock's IBIT and Fidelity's FBTC, comes amid emerging allegations regarding the firm's potential role in driving Bitcoin (BTC) price drops. Reports suggest the firm has pivoted significantly toward Ether-based ETFs and crypto-linked equities while scaling back its direct Bitcoin exposure.
This tactical rotation comes as major market makers seek relative value opportunities; market data indicates that Ether has underperformed Bitcoin by approximately 35% over the past year per search citations. This move aligns with broader institutional trends, such as Societe Generale's expanding digital asset services, reflecting a growing appetite for crypto diversification beyond Bitcoin's dominance, particularly as institutional trading patterns face increased scrutiny per market data.
Looking ahead, IBIT shares remained at their current levels (at close May 13, 2026), while traders eye the US Initial Jobless Claims scheduled for May 14, 2026, per the economic calendar. Investors will watch if Jane Street's 71% reduction signals a wider institutional exit from spot Bitcoin products, especially as the debate intensifies over the impact of market makers on digital asset volatility.
Update: Contrasting Jane Street's exit, SEC 13F filings revealed that JPMorgan Chase increased its stake in the iShares Bitcoin Trust (IBIT) by 174% during the first quarter. This divergence among major financial institutions highlights a split in sentiment regarding Bitcoin's near-term price trajectory.
Update: Subsequent reports revealed that Jane Street's investment in Ethereum ETFs totaled $82 million during the first quarter of 2026. This specific figure underscores the scale of the firm's conviction in the second-largest cryptocurrency as part of its portfolio rotation strategy.