Bitcoin’s latest cycle is defined by heavier institutional flows, ETF-driven liquidity and $24 billion in tokenized RWAs, with volatility nearly halved as $732 billion in new capital flows in.
Summary
- Glassnode estimates that Bitcoin has absorbed approximately $732 billion in new capital this cycle, while one-year realized volatility is down nearly 50%.
- Tokenized real-world assets rose from $7 billion to $24 billion in a year as pension funds, hedge funds and corporations seek on-chain exposure through regulated products.
- ETF rails, deeper liquidity and active market forces have shifted flows to traditional infrastructure, tightening spreads and dampening extreme spot price swings.
Bitcoin’s current market cycle has seen 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 changed as larger investors increase their presence in the cryptocurrency sector.
The report estimates that Bitcoin has absorbed approximately $732 billion in new capital during this cycle, accompanied by a significant drop in volatility. Realized volatility over a year has fallen by almost half, the report said.
According to Glassnode, Bitcoin is settling
Bitcoin (BTC) has cleared about $6.9 trillion in the last 90 days, making it comparable to payment processors Visa and Mastercard, according to Glassnode. The company noted that Bitcoin and stablecoins continue to dominate the transfer of value on public ledgers, despite increased activity moving to exchange-traded funds and brokerage channels.
Capital flows into ETFs have changed the way investments enter and exit the asset class, according to the report. The adoption of regulated investment vehicles has routed 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 said.
Real-world tokenized assets have grown from $7 billion to $24 billion in a year, marking significant institutional adoption, according to the data. Tokenized funds have gained popularity as asset managers explore new distribution models and investors seek easier access to traditional instruments, the report said.
The growth of tokenized RWAs reflects interest from pension funds, hedge funds and corporations looking for on-chain exposure without taking directional positions on major cryptocurrencies, according to Glassnode. The segment has attracted consistent inflows through 2025 as platforms improve custody, compliance and settlement infrastructure, the company said.
Glass junction reported that market structure has become larger and shows lower volatility. The company described the market as trading with fewer extremes compared to previous cycles, citing deeper liquidity and a greater share of institutional flows across derivatives, spot markets and on-chain data.
Stablecoins continue to function as the main bridge between traditional and digital markets, with settlement demand remaining substantial in centralized and decentralized locations, the report said. The dual-rail structure has become a permanent feature of the ecosystem, the report said.
According to Glassnode, demand for ETFs has led to greater participation of traditional firms in market making and arbitrage, narrowing spreads and reducing price dislocations during market sell-offs. The company says these dynamics have contributed to a more resilient market compared to previous cycles.
Analysts expect institutional involvement to increase as tokenized funds achieve broader adoption, the report said. 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 that the sector is entering a more structurally mature phase.
