Jane Street Cut 70% of Its BTC ETFs. Goldman Cut 10%. The Smart Money Is Rotating. May 27. — Thailand Guide

Jane Street — the largest market maker in crypto ETFs — just cut its Bitcoin ETF holdings by 70%. Goldman Sachs trimmed 10%. Together, they pulled roughly $2.3 billion from spot BTC ETFs in Q1 filings made public this month. Meanwhile, 2026 net inflows into Bitcoin ETFs have collapsed to just $536 million — down from over $4 billion at peak. The smart money isn’t panicking. It’s rotating. And the destination tells you everything about what comes next.

While institutions shed BTC exposure, altcoin ETFs are absorbing the flow. XRP ETFs pulled in $60.5 million last week. SOL ETFs added $58.12 million. VanEck and Grayscale filed for BNB spot ETFs. 21Shares launched the first Hyperliquid ETF (THYP) to $1.2 million in day-one volume. The rotation isn’t from crypto to cash — it’s from BTC to everything else.

The ETF Exodus: $1.55B Gone Since May 14

Six consecutive days of outflows. $1.55 billion bled since May 14. And the 13F filings revealed what was happening behind the scenes all along.

Institution	Action	Size
Jane Street	Cut BTC ETF holdings	-70%
Goldman Sachs	Reduced BTC ETF position	-10%
ETF net outflows (May 14-23)	6-day streak	-$1.55B
2026 YTD net inflows	Collapsed	$536M (from $4B+ peak)
Total ETF AUM	Below $100B	$98.9B

The Jane Street cut is the headline, but the context matters. Jane Street is a market maker, not a directional investor. Their ETF holdings are largely hedged — they profit from spreads, not from Bitcoin going up. A 70% reduction signals reduced market-making activity, which means lower liquidity and wider spreads for ETF traders.

Goldman’s 10% trim is more telling. That’s a directional call. When Goldman reduces crypto exposure while 30-year Treasuries yield 5.1%, the message is clear: risk-free returns compete with Bitcoin for the first time in 17 years. Why hold a volatile asset when the bond market pays 5%?

But here’s the contrarian data point that nobody’s discussing: cumulative inflows since January 2024 still stand at $57.1 billion. The structural thesis took a hit — $1.55 billion worth. It’s not dead. And Santiment’s framework reads peak ETF outflows as a reliable contrarian buy signal.

Iran MOU: “Largely Done” But Unsigned — Strikes Continue

The deal Trump called “largely negotiated” on Friday remains unsigned. Over the Memorial Day weekend, the situation deteriorated rather than resolved.

Event	Status
14-point MOU	Negotiated but NOT signed
Strait of Hormuz	Still restricted
US “defensive strikes”	Ongoing against Iranian missile sites
UAE drone attacks	Second consecutive day Sunday
Iran’s position	Disputes “incomplete” characterization
Nuclear material handover	Major sticking point
Sovereignty over Hormuz	Unresolved

Trump’s May 24-25 deadline passed without a signature. Iran’s Fars news agency dismissed the announcement as “incomplete and inconsistent with reality.” US forces conducted what the Pentagon called “defensive strikes” on Iranian missile sites over the weekend. UAE intercepted drones for the second straight day.

The market had already priced in partial optimism — Brent crude dropped 5% to $98.87 on Friday’s headlines. But without a signature, that risk premium snaps back. Oil futures will re-price when Asian markets open. If Brent reclaims $100+, the inflation narrative tightens again, and Warsh’s June 17 FOMC meeting becomes even more hawkish.

Polymarket still prices 91% odds of a deal by December 2026. But only 12% before June and 30% before July. The market believes peace is coming — just not yet. For Bitcoin at $77K, “not yet” is the problem.

BTC at $77K: Fear & Greed at 30, Waller Says “Not the Right Direction”

Bitcoin is trading around $77,000 as US markets return from Memorial Day. The Fear & Greed Index sits at 30 — deep fear, virtually unchanged from the 25-28 range that has persisted for two weeks.

Metric	Value	Context
BTC Price	~$77,000	Flat through holiday weekend
Fear & Greed	30	Fear — 2 weeks in this range
Weekly change	-6.5%	From $82K to $77K
ETF outflows (2 weeks)	-$2.26B	Worst since January
Bitfinex margin longs	80,636 BTC	Still at 2.5-year high
Strive BTC purchase	1,109 BTC	Total now 16,500 BTC

Fed Governor Waller added macro headwinds Friday, stating that “inflation is not headed in the right direction” — reinforcing the hawkish stance that’s kept rate cut expectations pushed to September at the earliest. With CPI at 3.8% and oil still above $95, Warsh has zero cover to cut at the June 17 FOMC.

The one bullish data point: Strive Asset Management acquired 1,109 BTC during the dip, bringing their total to 16,500 BTC. Corporate accumulation continues even as ETF flows reverse. Between Strategy’s 843,738 BTC and Strive’s growing position, the buy-side isn’t gone — it’s just moved from ETFs to direct holdings.

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The Altcoin ETF Rotation: XRP, SOL, BNB, and Hyperliquid

This is the story nobody’s talking about. While Bitcoin ETFs bled $1.55 billion, altcoin ETFs absorbed capital at the fastest rate since their launch.

ETF Category	Weekly Flow	Notable
BTC spot ETFs	-$1.26B	6-day outflow streak
XRP ETFs	+$60.5M	Strongest week since launch
SOL ETFs	+$58.12M	Second-best week
BNB spot ETF	Filed	VanEck + Grayscale applications
Hyperliquid ETF (THYP)	Launched	21Shares, $1.2M day-one volume

The VanEck and Grayscale BNB spot ETF filings are particularly significant. BNB is the first exchange token to get ETF applications from major issuers. If approved, it creates a direct pipeline from traditional finance into the Binance ecosystem — which is why BNB held above $600 while everything else sold off.

21Shares’ Hyperliquid ETF (THYP) is a different signal. It’s the first ETF built around a DeFi perpetual exchange token. Day-one volume of $1.2 million is modest, but the precedent matters: Wall Street is wrapping DeFi protocols into tradeable wrappers. The barrier between on-chain and off-chain is dissolving.

The rotation logic is straightforward. BTC dominance at 60% is historically elevated. When geopolitical uncertainty resolves — even partially — capital flows from BTC into higher-beta alts. XRP and SOL ETFs are the first institutional vehicles for that rotation. BNB ETFs will be the next.

Binance Delistings: 5 Tokens Removed Today

Housekeeping: Binance delists five tokens today, May 27 — Automata (ATA), Harvest Finance (FARM), Enzyme (MLN), Phoenix (PHB), and Syscoin (SYS). All five dropped 23-34% when the delisting was announced. If you’re still holding any of these, the exit window is closed. Trading ceases at 03:00 UTC.

Technical Levels: $77K Is No Man’s Land

BTC has consolidated around $77K for the entire Memorial Day weekend. The technical picture is unchanged from Friday — range-bound between $76K support and $78K resistance.

Resistance

Level	Significance
$78,150	First major resistance / upper range
$80,000	Psychological + Strategy cost basis
$82,000-$82,500	200-day MA cluster — 8+ months rejection
$85,000	Iran deal fully priced target

Support

Level	Significance
$76,100	Bottom support / immediate floor
$74,200-$74,800	May 23 low — structural support
$72,000	Next major support if $74K breaks
$67,000	ABC correction target (Van de Poppe)

RSI at 46 remains neutral. Fear & Greed at 30 is extreme but hasn’t triggered a bounce yet — the signal needs a catalyst. The Bitfinex whale long at 80,636 BTC hasn’t budged. The setup is identical to last week: compressed range, extreme fear, massive whale longs, waiting for resolution.

The catalyst schedule is clear: April PCE data on Friday (May 30) and Warsh’s first FOMC on June 16-17. PCE will show whether the oil spike is feeding into core inflation. If core PCE stays below 3.5%, the June cut isn’t happening but September stays alive. If it prints above 3.5%, rate hike odds spike and $74K breaks.

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The Week Ahead

Date	Event	Impact
May 27 (today)	Binance delistings (ATA, FARM, MLN, PHB, SYS)	Trading ceases 03:00 UTC
May 27 (today)	US markets reopen after Memorial Day	ETF flows resume
May 28 (Wed)	Q1 GDP second estimate	Includes corporate profits
May 30 (Fri)	April PCE (Core)	Warsh’s key inflation gauge
June 8	Strategy STRC shareholder vote	Saylor’s BTC buying capacity
June 16-17	Warsh’s first FOMC meeting	THE event for H2 2026

The PCE print Friday is the week’s main event. The March-to-April data will capture the oil spike’s impact on consumer prices. A hot print kills rate cut hopes through September. A cool print reopens the door. Either way, BTC’s $76K-$78K range breaks this week.

The Bottom Line

The smart money is telling you two things simultaneously. First: Bitcoin ETFs are overweight and need rebalancing. Jane Street cut 70%. Goldman cut 10%. $1.55 billion left in two weeks. Second: crypto isn’t done — they’re just rotating. XRP ETFs pulled $60.5 million. SOL ETFs pulled $58.12 million. VanEck filed for a BNB ETF. 21Shares launched a Hyperliquid wrapper.

The Iran MOU that was “largely done” on Friday is still unsigned on Tuesday. US strikes continue. UAE drones continue. Oil stays above $95. Waller says inflation isn’t going the right way. Fear & Greed is at 30. And Bitfinex whales sit on 80,636 BTC in longs, waiting for the same catalyst everyone else is waiting for.

Friday’s PCE data will either validate the fear or punish it. Until then, $77K is purgatory.

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Why are institutions rotating from Bitcoin ETFs to altcoin ETFs?

Institutional investors are rotating from Bitcoin ETFs to altcoin ETFs as BTC dominance at 60% reaches historically elevated levels. Jane Street cut BTC ETF holdings 70% and Goldman Sachs reduced 10%, while XRP ETFs absorbed $60.5 million and SOL ETFs pulled in $58.12 million in the same week. The rotation reflects two dynamics: 30-year Treasury yields at 5.1% competing with BTC’s risk/reward profile, and early positioning for an altcoin season if geopolitical tensions resolve. VanEck and Grayscale filing for BNB spot ETFs signals that the institutional pipeline is expanding beyond Bitcoin and Ethereum into exchange tokens and DeFi protocols.

This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.