‍#Gate广场五月交易分享

‍# Jane Street Reduces Bitcoin ETF Holdings
That man on Wall Street who disturbs the crypto world is back. The previously influential Jane Street, which caused daily crashes at 10:00 AM, has once again impacted the crypto market. In the first quarter of 2026, it significantly cut its Bitcoin ETF exposure. BlackRock's IBIT holdings decreased by about 71% to 5.87 million shares, and Fidelity's FBTC holdings dropped by approximately 60% to 1.95 million shares. During the same period, MicroStrategy's holdings also decreased by about 78% to 210k shares. But it’s worth noting that Jane Street is not exiting the crypto market but reallocating funds into Ethereum ETFs, suggesting this might be just a strategic “rebalancing” of positions.

Core reasons behind the rebalancing

‌Betting on Ethereum ecosystem upgrades and accelerated institutional adoption‌

Large-scale increases in Ethereum ETFs (such as BlackRock's ETHA and Fidelity's FETH, totaling about $82 million USD) indicate that Jane Street is optimistic about Ethereum’s long-term value as a smart contract platform in DeFi, tokenized assets (RWA), and other fields. Meanwhile, Wells Fargo increased its ETHA holdings by over 60% during the same period, implying traditional financial institutions are deploying Ethereum through compliant ETF channels, forming a consensus among institutions.

‌Avoiding short-term Bitcoin liquidity pressures and regulatory uncertainties‌

The sharp reduction in IBIT (-71%) and FBTC (-60%) holdings may stem from concerns over Bitcoin ETF market liquidity. Previously, the market questioned whether Jane Street, as an authorized participant (AP), was selling Bitcoin during U.S. stock market open hours to suppress prices. The 78% reduction in MicroStrategy (MSTR) holdings further indicates an intention to lower indirect Bitcoin exposure, especially as MSTR faces volatility risks due to high leverage.

‌Shifting towards crypto industry chain assets with clear cash flows‌

Increased holdings in mining companies Riot Platforms (+48%, to 7.4 million shares) and Cbase (+14%) show Jane Street’s preference for crypto infrastructure firms with actual revenue-generating capabilities. Riot’s large-scale mining operations and low-cost power contracts provide resilience against market cycles, while Cbase benefits from ETF custody and trading volume growth, making its business model more sustainable than mere asset holdings.

II. Potential impacts on the cryptocurrency market

‌Ethereum opens a window for incremental capital inflows‌

Institutional funds continue to flow into Ethereum via ETFs (such as BlackRock’s new ETHB supporting staking), which could push ETH beyond the current 2,300–3,500 USD trading range. If the Federal Reserve cuts interest rates in the second half of the year and zkEVM upgrades occur, Ethereum may replicate the capital siphoning effect seen after Bitcoin ETF listings.

‌Bitcoin faces short-term pressure but selling pressure eases‌

Although Jane Street’s reduction is a negative sentiment signal, its holdings have already been significantly decreased (IBIT from about 790 million in Q4 to 225 million), so subsequent selling pressure has markedly weakened. If other APs do not follow suit in selling, Bitcoin may accelerate its bottoming process, creating conditions for a mid-term rebound.

‌Divergence among crypto concept stocks intensifies‌

‌Beneficiaries‌: compliant mining companies (like RIOT), exchanges (COIN), and staking service providers will attract capital, as their business growth is tied to the ecosystem rather than just coin prices.

‌Under pressure‌: highly leveraged Bitcoin holding companies (such as MSTR) may continue to face reductions unless Bitcoin quickly breaks through previous highs.