Major Wall Street Firm Dumps Bitcoin ETFs

Quantitative trading giant Jane Street has dramatically reduced its Bitcoin-related exposure during the first quarter of 2026. 

According to the firm's latest 13F filing, Jane Street slashed its holdings in BlackRock’s IBIT ETF by approximately 71% and cut its position in Fidelity’s FBTC by roughly 60%. 

The firm also trimmed its exposure to several Bitcoin mining firms and Strategy.

Simultaneously, the Wall Street firm expanded its positions in other areas of the digital asset market.

 Jane Street increased its exposure to BlackRock and Fidelity Ether ETFs. It has also boosted its holdings in crypto-centric equities such as Riot Platforms, Coinbase, and Galaxy Digital.

Manipulation or mechanics?

Following the Q1 filing, market analyst Jeff Park noted that "price discovery is back on the menu." Notably, he referenced the popular conspiracy within the cryptocurrency community about Jane Street suppressing the price of Bitcoin and preventing the flagship cryptocurrency from hitting the much-coveted $150,000 mark. 

However, the reality of this dynamic is far more nuanced.

According to Park, the issue does not lie with Jane Street maliciously manipulating the market. 

As the analyst explained earlier, Bitcoin's anomalous price moves boil down to  the structural architecture of Bitcoin ETFs that applies equally to all Authorized Participants (APs) in the ecosystem. This includes giants like JPMorgan, Goldman Sachs, and Citadel Securities.

APs are exempt from locating shares before shorting. This allows them to manufacture shares essentially at will. This regulatory carve-out operates as an arbitrage with unmatched duration.

The SEC's recent approval of in-kind creation and redemption further complicates things. Under the previous cash-only model, APs delivered cash to the fund, which mechanically forced the purchase of spot Bitcoin. However, when it comes to in-kind redemption, APs can source and deliver Bitcoin directly from OTC desks at negotiated prices. There is a minimum market impact. 

Ultimately, no single AP explicitly suppresses the price of Bitcoin. However, the price discovery mechanism can be affected by the regulatory framework and structural flexibility.