The sustained influx of institutional capital into spot Bitcoin exchange-traded funds (ETFs) has significantly reduced Bitcoin’s historical price volatility, transforming its market dynamics. Data reveals Bitcoin’s 30-day rolling volatility has plummeted from over 150% to approximately 35% following the launch of U.S. spot Bitcoin ETFs in 2024, marking a structural shift toward stability.
Spot Bitcoin ETFs now command over $143 billion in assets under management, establishing a regulated conduit for institutional and retail investment. Registered Investment Advisers (RIAs), overseeing more than $146 trillion in assets, alongside hedge funds are increasingly allocating to Bitcoin through these vehicles.
Growing pension fund interest in spot ETFs further signals mainstream acceptance, as institutional participation transitions Bitcoin from a speculative instrument to a recognized financial asset. This capital influx continues to reshape market behavior, underpinning Bitcoin’s maturation within global finance.