Jane Street is Bullish on Coinbase COIN and Here is Why

• Jane Street Capital now holds over 5% of Coinbase’s outstanding stock, up from less than 2% in December 2023
• Jane Street is now among the largest investors in Coinbase’s public stock, alongside firms like Vanguard Group, BlackRock, and Ark Invest
• The investment signals Wall Street’s increasing interest in the crypto sector, as institutional investors also seek exposure through spot Bitcoin ETFs

Jane Street Capital, the prolific trading firm, has quietly accumulated a substantial stake in Coinbase. The investment highlights growing institutional interest in the crypto sector amid broader adoption.

Jane Street’s Coinbase Investment

According to a February regulatory filing, Jane Street owns 5.3% of Coinbase’s outstanding shares, valued at $24 billion based on current prices. This signifies a major increase from December when the firm held just 1.92% of outstanding shares worth $888 million.

With its stake of over 5%, Jane Street is now among Coinbase’s largest shareholders. The firm trails Vanguard Group, which held 7.44% of outstanding shares in February. Other major Coinbase investors include BlackRock, Paradigm, Ark Invest, and Nikko Asset Management Americas.

Wall Street Adopts Crypto

Jane Street’s investment in Coinbase highlights growing institutional interest in crypto. While the firm could invest directly in cryptocurrencies, Coinbase offers exposure as a publicly-traded crypto leader.

Institutional investors are also gravitating toward SEC-approved spot Bitcoin ETFs. Recent filings show companies like BlackRock, Fidelity, and Grayscale buying shares in spot Bitcoin ETFs from firms like ProShares and Valkyrie. These ETFs have already accumulated over $58 billion in assets under management.

So in addition to Coinbase stock, spot Bitcoin ETFs are becoming a preferred vehicle for Wall Street to gain exposure to crypto. With major firms like Jane Street, BlackRock, and Vanguard investing heavily in the sector, it’s clear that institutional adoption is rising. Their investments provide validation while likely spurring further adoption.