Bitcoin Volatility May Decrease Following Spot ETF Launch, Suggesting Improved Market Stability

Key Points

1. Bitcoin's 90-day rolling volatility fell below 40 after the spot ETF launch, signaling reduced price swings and enhanced market stability.

2. The introduction of spot Bitcoin ETFs has improved market liquidity and accessibility, attracting more institutional investors.

3. Reduced volatility makes Bitcoin more appealing to risk-averse investors, potentially fostering broader adoption in regulated financial markets.

4. Bitcoin's post-ETF volatility is now less than twice that of gold, highlighting its evolving role as a digital asset with a maturing risk profile.

5. The shift in volatility reflects a maturing crypto market, with ETFs contributing to more stable price movements and increased investor confidence.