In a remarkable turn of events for the cryptocurrency sector, BlackRock’s iShares Bitcoin Trust (IBIT) is basking in an era of record-low volatility, according to Senior Bloomberg ETF analyst Eric Balchunas. This newfound stability is drawing in droves of risk-averse investors who view Bitcoin as “digital gold” rather than a volatile tech stock. The 90-day rolling volatility of IBIT has plummeted to 47.64—the lowest since its January 2024 inception—signifying a new chapter for Bitcoin exchange-traded funds.
The Calm in the Crypto Storm
Balchunas, in a recent post on X, highlighted the self-reinforcing nature of this low volatility. “The thing with volatility is it can become self-fulfilling,” he noted. “The lower the volatility gets, the more bigger investors will bite who will help lower volatility even more.” It seems that as volatility wanes, larger institutional investors are stepping in, further stabilizing the market. This cycle of confidence and stability is what Balchunas refers to as the influence of ‘suitcoiners’—a term capturing the influx of traditional finance professionals into the crypto space. This trend aligns with predictions that Bitcoin ETFs, gov’t adoption to drive BTC to $1M by 2029, indicating a broader institutional embrace of Bitcoin.
The data tells the tale. Since its launch, IBIT has attracted a whopping $49 billion in net inflows, overshadowing the second-place Fidelity Wise Origin Bitcoin Fund (FBTC) by a factor of four, with FBTC managing to pull in just under $12 billion. These figures, provided by Farside Investors, underscore a growing appetite for Bitcoin ETFs that offer a semblance of predictability.
Diverging Paths in Bitcoin Investment
While IBIT is embracing a low-volatility environment, other Bitcoin-related investments are charting different courses. Take MicroStrategy (MSTR), for instance. The software company has made headlines for its aggressive Bitcoin purchases, appealing primarily to speculators and options traders who relish the highs and lows of market volatility. Yet, even MSTR is experiencing a cooling-off period, with its implied volatility dipping to 60% and historical volatility at 49%.
This shift raises intriguing questions about where the market is headed. Are we witnessing the emergence of a bifurcated Bitcoin investment landscape—one that caters to conservative, long-term investors and another that feeds the thrill-seekers? Or is this just a temporary lull before the next storm of volatility? For a contrasting perspective, consider why Grayscale’s Bitcoin Trust still dominates ETF revenue in 2025, highlighting the diverse strategies within the Bitcoin investment space.
The Broader Market Implications
The implications of IBIT’s stability extend beyond just investor sentiment. It could signify a maturing market where Bitcoin is starting to fulfill its promise as a store of value, akin to gold. This transformation might encourage more institutional investors to take the plunge, seeking refuge from traditional market swings. However, the crypto realm is nothing if not unpredictable, and the future trajectory of Bitcoin’s volatility remains an open question.
As we stand on the brink of June 2025, the crypto community is buzzing with speculation. Will IBIT’s low volatility persist, drawing even more conservative capital into the fold? And how will this influence the broader adoption of Bitcoin and other cryptocurrencies?
In the unpredictable world of crypto, one thing is certain: as Bitcoin ETFs like IBIT continue to evolve, they will play a pivotal role in shaping the future landscape of digital currency investments. Whether this marks the beginning of a new era of stability or just a fleeting moment of calm remains to be seen. The market—and its players—will be watching closely.
Source
This article is based on: BlackRock’s Bitcoin ETF Reaches Record Low Volatility, Draws Billions in Flows
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
