The latest phase of Bitcoin is characterized by significant institutional investments, ETF-driven liquidity, and a rise in tokenized Real-World Assets (RWAs) from $7 billion to $24 billion. As $732 billion in new capital flows in, volatility has nearly halved.
Summary
- According to Glassnode, Bitcoin has absorbed around $732 billion in new capital this cycle, with one-year realized volatility decreasing by almost 50%.
- Tokenized RWAs surged from $7 billion to $24 billion in a year, as pension funds, hedge funds, and corporations seek regulated on-chain exposure.
- The integration of ETFs, enhanced liquidity, and active market-making has transformed flows into traditional infrastructures, thereby tightening spreads and minimizing extreme price fluctuations.
The current Bitcoin market cycle reflects heightened institutional engagement and diminished volatility, with tokenized RWAs reaching $24 billion, as per data from blockchain analytics company Glassnode.
A new cost-basis cluster formed after Bitcoin’s drop into the low-$80K region, showing fresh accumulation at these levels. This zone is now one of the densest on the heatmap and could act as a strong support area, likely to be defended by recent buyers.
📉https://t.co/M4LXVTyLB9 pic.twitter.com/yQHK8ziwMA— glassnode (@glassnode) December 1, 2025
Glassnode, along with Fasanara Capital, mentioned in their Q4 Digital Assets Report, that the market’s structure is evolving as institutional investors increase their footprint in the crypto sector.
The report projects that Bitcoin has received roughly $732 billion in new investment this cycle, alongside a notable drop in volatility. The one-year realized volatility has fallen by nearly half, as stated in the report.
Bitcoin Settles According to Glassnode
Over the past 90 days, Bitcoin (BTC) has settled around $6.9 trillion, ranking it alongside payment giants Visa and Mastercard, as per Glassnode’s analysis. The firm observes that Bitcoin and stablecoins continue to lead in value transfers on public ledgers, despite the shift of activity towards exchange-traded funds and brokerage channels.
ETF capital flows have redefined the processes through which investments enter and exit the asset class, as noted in the report. The rise of regulated investment vehicles has shifted substantial volumes through traditional market frameworks, promoting stable liquidity conditions and lessening significant price swings in spot markets, according to the report.
In one year, tokenized RWAs have escalated from $7 billion to $24 billion, indicating a marked institutional interest, based on the data. Tokenized funds are gaining popularity as asset managers explore innovative distribution techniques and investors seek easier access to traditional financial instruments, as per the report.
The expansion of tokenized RWAs showcases growing interest from pension funds, hedge funds, and corporations wanting on-chain exposure without engaging directly with major cryptocurrencies, Glassnode reports. Continued inflows have been observed in this sector throughout 2025, as platforms improve their custody, compliance, and settlement systems, the firm indicated.
Glassnode reported that the market structure is becoming larger while exhibiting reduced volatility. The firm characterized the market as trading with less extremity compared to earlier cycles, citing deeper liquidity and a greater proportion of institutional inflows across derivatives, spot markets, and on-chain data.
Stablecoins remain essential as the primary link between traditional and digital markets, with a considerable settlement demand in both centralized and decentralized environments, the report notes. The dual-rail structure has established itself as a permanent aspect of the ecosystem, according to the report.
Increased ETF demand has drawn more participation from market-makers and arbitrageurs in traditional settings, leading to tighter spreads and reduced price dislocations during market downturns, as mentioned by Glassnode. This dynamic has enhanced market resilience compared to earlier cycles.
Analysts anticipate that institutional engagement will grow as tokenized funds gain wider acceptance, according to the report. Glassnode describes the current market cycle as a pivotal moment in industry dynamics, marked by increased institutional flows, reduced volatility, and rapid expansion of tokenized RWAs, signaling a more mature phase for the sector.
