BlackRock’s Bitcoin ETF Reaches Record Low Volatility, Draws Billions in Flows
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James Van Straten
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By James Van Straten|Edited by Sheldon Reback
May 30, 2025, 8:15 a.m.
- The 90-day rolling volatility for BlackRock’s Bitcoin Trust ETF dropped to 47.64, the lowest since its debut, increasing the appeal for investors seeking bitcoin exposure without tech-like risk.
- Bloomberg analyst Eric Balchunas suggests low volatility is attracting institutional capital, creating a feedback loop that further stabilizes the ETF.
BlackRock’s iShares Bitcoin Trust exchange-traded fund (IBIT) is experiencing record-low volatility, according to Senior Bloomberg ETF analyst Eric Balchunas, which is attracting more interest from larger investors looking for a “digital gold” rather than speculative tech-like behavior.
The 90-day rolling volatility of 47.64 is the lowest since the ETF was introduced in January 2024, Balchunas posted on X, a degree of stability that can be self-reinforcing. As volatility drops, larger and more risk-averse investors tend to enter, which in turn further suppresses volatility.
STORY CONTINUES BELOW
“The thing with volatility is it can become self-fulfilling,” Balchunas said in his post. “The lower the volatility gets, the more bigger investors will bite who will help lower volatility even more. The same ‘should’ happen with correlation too. This is a direct result of the ‘suitcoiners.’”
The trend is already underway, Balchunas said, citing IBIT’s outsized inflows in recent weeks. Since its debut, IBIT has pulled in $49 billion in net inflows, more than four times the amount invested into the second-ranked Fidelity Wise Origin Bitcoin Fund (FBTC), which has attracted less than $12 billion, data from Farside Investors show.
In contrast, Strategy (MSTR), the software company that has made buying bitcoin
a strategic priority, operates on a different appeal. MSTR attracts speculators and options traders who thrive on higher implied volatility (IV). However, evenMSTR’s IVhas dipped recently to 60%, with historical volatility at 49%, contributing to itsmuted price action.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system.
In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin and Strategy (MSTR).
