Jane Street, one of Wall Street’s largest proprietary trading firms and a major market maker in exchange-traded funds (ETFs), appears to be rotating exposure from Bitcoin to Ethereum, according to market reports and analyst commentary this week. The shift has sparked fresh debate over whether Ethereum could become the firm’s next primary focus in crypto markets.
Jane Street Trims Bitcoin ETFs, Adds to Ethereum Funds
In the first quarter, Jane Street reportedly reduced several Bitcoin-linked positions while increasing exposure to Ethereum products.
- The firm’s stake in BlackRock’s iShares Bitcoin Trust (IBIT) fell by about 71% quarter-over-quarter to roughly 5.9 million shares, valued near $225 million.
- Holdings in Fidelity’s Wise Origin Bitcoin Fund (FBTC) were also reduced by approximately 60% to around 2 million shares, worth about $115 million at quarter-end.
- Jane Street additionally cut its exposure to Bitcoin-proxy equities, while expanding positions in Ethereum ETFs, including BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum fund. Combined additions across the two ETH products were estimated at roughly $82 million.
The reported portfolio moves arrive after months of heightened scrutiny on crypto market structure and flows around major ETFs. Bitcoin spot ETFs launched in the U.S. in January 2024, while spot Ethereum ETFs followed later that year.
Analysts Cite Market Structure: ‘Easier to Move’ ETH
Market analysts at Bull Theory framed the rotation as potentially driven by market-structure dynamics rather than a directional fundamental view. They argued that Ethereum’s derivatives and spot markets are smaller than Bitcoin’s, which could make ETH prices more sensitive to capital flows.
- Open interest in Bitcoin futures is estimated around $60 billion, versus approximately $34 billion for Ethereum, according to the analysts.
- Bitcoin’s market capitalization is about $1.6 trillion compared with Ethereum’s roughly $273 billion, implying that equal-sized trades may produce a larger percentage move in ETH.
- They also noted that U.S. Bitcoin ETFs are estimated to hold around 6.7% of circulating BTC, while Ethereum ETF penetration remains lower, potentially offering a thinner “demand floor” for large flows.
The analysts emphasized these points as a thesis on relative price impact. The claims are interpretive and do not by themselves suggest wrongdoing.
Market Snapshot
At the time of writing, ETH was trading near $2,292, little changed from the prior day. Bitcoin and XRP rose roughly 2% and 4%, respectively, over the same period, according to market data.