Bitcoin’s latest cycle is defined by heavier institutional flows, ETF-driven liquidity and $24B in tokenized RWAs, with volatility nearly halved as $732B in new capital enters.
Summary
- Glassnode estimates Bitcoin absorbed about $732B in new capital this cycle while one-year realized volatility dropped by nearly 50%.
- Tokenized real-world assets expanded from $7B to $24B in a year as pension funds, hedge funds and corporates seek on-chain exposure via regulated products.
- ETF rails, deeper liquidity and active market-making have moved flows into traditional infrastructure, tightening spreads and dampening extreme spot price swings.
Bitcoin’s current market cycle has shown increased institutional participation and reduced volatility, with tokenized real-world assets reaching $24 billion, according to data released by blockchain analytics firm Glassnode.
Glassnode and Fasanara Capital stated in their Q4 Digital Assets Report that the market structure has shifted as larger investors increase their presence in the cryptocurrency sector.
The report estimated Bitcoin has absorbed approximately $732 billion in new capital during this cycle, accompanied by a significant decline in volatility. One-year realized volatility has decreased by nearly half, the report stated.
Bitcoin is settling according to Glassnode
Bitcoin (BTC) settled approximately $6.9 trillion over the past 90 days, placing it comparable to payment processors Visa and Mastercard, according to Glassnode. The firm noted that Bitcoin and stablecoins continue to dominate value transfer on public ledgers despite increased activity moving to exchange-traded funds and brokerage channels.
Capital flows into ETFs have altered how investment enters and exits the asset class, according to the report. The adoption of regulated investment vehicles has directed large volumes through traditional market infrastructure, contributing to more stable liquidity conditions and reducing the frequency of large price swings in spot trading, the report stated.
Tokenized real-world assets have expanded from $7 billion to $24 billion within one year, marking significant institutional adoption, according to the data. Tokenized funds have gained traction as asset managers explore new distribution models and investors seek simplified access to traditional instruments, the report noted.
The growth of tokenized RWAs reflects interest from pension funds, hedge funds and corporations seeking on-chain exposure without taking directional positions on major cryptocurrencies, according to Glassnode. The segment has attracted consistent inflows through 2025 as platforms enhance custody, compliance and settlement infrastructure, the firm stated.
Glassnode reported that market structure has become larger and demonstrated lower volatility. The firm described the market as trading with reduced extremes compared to earlier cycles, citing deeper liquidity and an increased share of institutional flows across derivatives, spot markets and on-chain data.
Stablecoins continue to function as the primary bridge between traditional and digital markets, with settlement demand remaining substantial across centralized and decentralized venues, according to the report. The dual-rail structure has become a permanent feature of the ecosystem, the report stated.
ETF demand has attracted increased market-making and arbitrage participation from traditional firms, tightening spreads and reducing price dislocations during market selloffs, according to Glassnode. The firm stated this dynamic has contributed to a more resilient market compared to previous cycles.
Analysts expect institutional involvement to increase as tokenized funds achieve broader adoption, according to the report. Glassnode characterized the current cycle as a turning point in market composition, with heavier institutional flows, reduced volatility and rapid growth of tokenized RWAs indicating the sector is entering a more structurally mature phase.
