BlackRock’s Bitcoin ETF Achieves Record Low Volatility with $49 Billion in Inflows
BlackRock’s iShares Bitcoin Trust (IBIT) is seeing record-low volatility, attracting interest from larger, risk-averse investors. Key points include:
- 90-day rolling volatility at 47.64, the lowest since IBIT's launch in January 2024
- Lower volatility tends to encourage more institutional investment, further reducing volatility
- IBIT has recorded $49 billion in net inflows, significantly surpassing Fidelity Wise Origin Bitcoin Fund (FBTC) with under $12 billion
- Strategy (MSTR), focused on speculative trading, has a historical volatility of 49% and an implied volatility of 60%
- MSTR's recent dip in implied volatility affects its price movement
Analyst Eric Balchunas noted that the influx of larger investors is a result of the ETF's stability, leading to self-reinforcing trends in both volatility and correlation.