Jane Street’s Crypto Trading Tripled Last Year
Wall Street firm benefited from market rebound and new bitcoin ETFs.
Jane Street, a Wall Street powerhouse, more than tripled its crypto trading in 2024 during the market rebound, boosted by bitcoin exchange-traded funds and the expected easing of crypto rules under President Donald Trump.
The New York–based company purchased $110 billion worth of cryptocurrencies, including stablecoins, and sold $110 billion worth of cryptocurrencies last year, according to financial documents seen by The Information. In 2023, it bought $31 billion in crypto and sold $30 billion in crypto.
Trading firms buy and sell crypto on exchanges like Binance and Coinbase, making money on the spread and boosting liquidity in the market.
Part of Jane Street’s growth came from the firm’s role trading bitcoin for ETFs that hold the cryptocurrency. The Securities and Exchange Commission approved bitcoin ETFs for the first time in January 2024, allowing investors to buy bitcoin the same way they would a stock. That kicked off a yearlong crypto market comeback, supercharged by Trump’s election victory in November.
Jane Street is one of the largest traditional financial trading firms that has ventured into crypto trading. The company, which made its first crypto trade in 2017, was for years a major liquidity provider in crypto. Its entry brought legitimacy to the industry. Several of its alumni went on to start or join crypto firms, including Sam Bankman-Fried, the disgraced crypto founder of FTX.
But the company pulled back its crypto activities in 2023, as regulators cracked down on the industry. Its buying and selling of crypto in 2023 dropped by nearly half from levels in 2022, when it bought $57 billion of crypto and sold $57 of billion crypto, according to the document.
The company doesn’t break down revenue from crypto-trading activities. In the document, it says it has “intentionally ensured [that crypto trading] remains a small portion of the broader firm” and that its trading is limited to “certain coins and venues.”
As the regulatory environment becomes friendlier, Jane Street could face competition from new entrants, such as Citadel Securities, which said it plans to enter crypto trading. Banks may also get into the field, if they get permission from regulators.
Jane Street’s total trading revenue nearly doubled to $20.5 billion last year, surpassing banks like Bank of America and Citigroup.
Jane Street declined to comment.