The Jane Street Agenda? Ethereum Identified as Next Key Target by Experts

Market maker giant Jane Street is shifting its focus within the crypto landscape, with experts suggesting Ethereum (ETH) has become the firm’s primary new target following a significant retreat from Bitcoin-linked holdings.

From Bitcoin Retreat to Ethereum Expansion

Recent reports indicate that Jane Street, one of Wall Street's most influential proprietary trading firms, drastically adjusted its portfolio during the first quarter of the year. The firm slashed its position in BlackRock’s iShares Bitcoin Trust (IBIT) by 71%, reducing its stake to approximately 5.9 million shares. Similar reductions were seen in Fidelity’s Bitcoin fund and MicroStrategy holdings. Simultaneously, the firm has been aggressively building its Ethereum footprint. Jane Street nearly doubled its position in BlackRock’s iShares Ethereum Trust and added substantial capital to Fidelity’s Ethereum fund. Analysts estimate these combined ETH product additions at approximately $82 million, signaling a clear strategic rotation between the two largest digital assets.

Market Structure and Price Impact

Market analysts at Bull Theory suggest this pivot is driven more by market mechanics than purely bullish fundamentals. Ethereum’s market capitalization is significantly smaller than Bitcoin's—roughly $273 billion compared to $1.6 trillion—meaning the same amount of capital can exert a much higher influence on price. Furthermore, Ethereum's derivatives market is currently more "movable." With Bitcoin's futures open interest sitting at $60 billion compared to Ethereum’s $34 billion, experts argue that Ethereum lacks the same level of "institutional demand floor" to absorb coordinated selling. This structural difference makes ETH an attractive target for firms looking to influence market direction with less capital expenditure.