BTC ETF has recorded inflows between $100 million and $900 million for 10 consecutive days, showing an increase of over $4.3 billion. ETFs like IBIT are continuously losing volatility and attracting new institutional investments.
BTC has always been used as "digital gold", but low volatility reduces the potential for high returns. This ETF volatility trend is attracting corporate funds, but individual investors may lose market influence.
BTC ETF Continues New Capital Inflows
The benefits of this BTC ETF are particularly significant because the market has faced several challenges this month. Of course, IBIT reported inflows for 30 out of 31 days, but the broader ETF market experienced several outflow periods in May.
Nevertheless, the upward trend began in mid-month and these gains have continued.
BTC price has recently shown good performance, with positive signals for future growth. Additionally, large corporations are accumulating BTC, a trend that could be reflected in the ETF market.
Analyst Eric Balchunas seems to believe that institutional investors are surprisingly driving BTC ETF inflows due to low volatility.
IBIT's Low(er) Volatility Rally is Luring in Bigger Fish.. the 90-day rolling vol of $IBIT is declining and has never been lower (chart). This – along w the rally itself – is helping to attract larger investors (who want digital gold, not a tech stock). This helps explain why… pic.twitter.com/6e5PD8IZ1R
— Eric Balchunas (@EricBalchunas) May 29, 2025
In particular, while BTC is generally considered a highly volatile asset, it can also be used as a hedge against inflation and recession.
BTC ETFs like IBIT have been consistently reducing volatility over the past 90 days, while traditional assets like gold are becoming more volatile. This trend is likely to encourage large investors to drive significant ETF inflows.
However, this approach may not be as bullish as it appears on the surface. BTC products were one of the largest ETF launches in history, and this volatility creates potential for high returns.
As this volatility decreases, the entire profile of mid-level ETF investors could change. Balchunas called this a "challenge" because different investors want different things.
BTC ETFs have permanently transformed the crypto industry, and this volatility assessment is one indicator of the overall trend. ETF issuers continue to purchase about 4,000 BTC daily while receiving these inflows.
Between the issuers' desires and other corporate holders, individual investors might be completely pushed out of BTC pricing.
For now, these ETF inflows are just another indicator of BTC's success. While there have been no major price fluctuations in the past month, BTC has recorded a very consistent upward trend.
