Jane Street Unloads $1 Billion on US Spot Bitcoin ETFs

Jane Street's massive return to Bitcoin has left many in the crypto space surprised. In its second-quarter securities filing, the hedge fund disclosed nearly $1 billion in U.S. spot Bitcoin ETF holdings.

The largest portion of this holding was in BlackRock's iShares Bitcoin Trust (IBIT), which accounted for roughly $828 million of the reported exposure. This marked a sharp rebuild from the first quarter, where Jane Street had reduced its IBIT position by about 71% to around $225 million.

Jane Street also expanded its exposure to other crypto ETFs, including products linked to XRP from Bitwise, Franklin Templeton, Grayscale, Canary Capital, and 21Shares. However, it's essential to note that the Form 13F filing only shows certain long securities positions at quarter-end, not a full trading book.

This means that Jane Street's reported Bitcoin ETF holdings do not establish its net directional Bitcoin position. The filing followed reports of Jane Street losing about $15 billion in July, but there is no clear connection between this loss and the firm's Bitcoin ETF holdings.