BlackRock’s Bitcoin ETF posts its lowest volatility yet, fueling billions in inflows.

BlackRock’s iShares Bitcoin Trust (IBIT) is setting new benchmarks for stability in the crypto market, attracting billions from institutional investors seeking a less volatile digital asset.

Senior Bloomberg ETF analyst Eric Balchunas highlighted on X that IBIT’s 90-day rolling volatility has dropped to 47.64, the lowest since the fund’s inception in January 2024. This steady performance appeals to large investors who prefer Bitcoin as a “digital gold” rather than a high-risk speculative bet.

“The lower the volatility, the more institutional investors are encouraged to buy, which in turn further suppresses volatility—a self-reinforcing cycle,” Balchunas explained. This pattern, driven by what he calls “suitcoiners,” is reshaping bitcoin investment dynamics.

IBIT’s inflows have reached $49 billion, dwarfing the $12 billion net inflows into Fidelity’s Wise Origin Bitcoin Fund (FBTC), data from Farside Investors shows.

Meanwhile, Strategy (MSTR), which has heavily invested in Bitcoin, continues to attract traders and speculators who thrive on higher implied volatility. Even MSTR’s implied volatility recently eased to 60%, with historical volatility near 49%, reflecting a quieter trading environment.

This divergence illustrates Bitcoin’s evolving market, balancing institutional demand for stability with ongoing speculative activity.