BlackRock’s BTC ETF experiences record-low price swings, drawing massive billions in funds.

BlackRock’s iShares Bitcoin Trust (IBIT) is registering historically low volatility levels, signaling growing confidence from institutional investors who are increasingly treating bitcoin as a stable store of value rather than a high-risk speculative asset.

Senior Bloomberg ETF analyst Eric Balchunas highlighted that IBIT’s 90-day rolling volatility has dropped to 47.64, the lowest since the fund’s launch in January 2024. This steady environment attracts larger, more conservative investors, creating a positive feedback loop that further reduces price swings.

Balchunas explained on X that “lower volatility breeds more interest from big investors, which in turn pushes volatility down even more—a self-reinforcing cycle. We anticipate correlations will follow the same trend, driven by institutional players or ‘suitcoiners.’”

Since its debut, IBIT has amassed $49 billion in net inflows, dwarfing the $12 billion gathered by Fidelity’s Wise Origin Bitcoin Fund (FBTC), according to Farside Investors data.

Meanwhile, Strategy (MSTR), known for its aggressive bitcoin accumulation strategy, caters primarily to speculators and traders who thrive on volatility. Even so, MSTR’s implied volatility has recently softened to about 60%, with historical volatility at 49%, contributing to a quieter trading atmosphere.

The contrasting investor profiles behind IBIT and MSTR highlight the evolving bitcoin market, where institutional stability and retail speculation coexist.