BlackRock’s iShares Bitcoin Trust (IBIT) is demonstrating historically low volatility, a development that’s drawing significant interest from institutional investors who view bitcoin more as a “digital gold” than a speculative asset.
Eric Balchunas, a senior ETF analyst at Bloomberg, noted on X that IBIT’s 90-day rolling volatility stands at 47.64—the lowest since its January 2024 launch. This reduced volatility tends to encourage large, risk-averse investors to commit capital, creating a virtuous cycle of stability.
Balchunas explained that “as volatility falls, bigger investors get attracted, pushing volatility even lower. This dynamic is driving a new wave of institutional participation, or what some call the ‘suitcoiners.’”
IBIT has amassed $49 billion in net inflows to date, far surpassing the $12 billion attracted by Fidelity’s Wise Origin Bitcoin Fund (FBTC), according to Farside Investors.
On the other hand, Strategy (MSTR), a company known for its heavy bitcoin purchases, remains favored by speculators and options traders who benefit from higher volatility. Recently, even MSTR’s implied volatility dropped to 60%, with historical volatility near 49%, leading to less dramatic price movements.
This contrast underscores how bitcoin’s market is maturing, blending institutional steadiness with speculative trading activity.
