- Bitcoin’s 2025 cycle shows rising institutional flows, lower volatility, and deeper liquidity.
- Tokenized real-world assets surge to $24 billion, boosting institutional adoption and on-chain activity.
- ETFs reshape Bitcoin liquidity as stablecoins remain key rails in a more mature digital asset market.
Bitcoin’s latest cycle is developing under a very different market structure, with data from Glassnode and Fasanara Capital pointing to deeper institutional participation, rapid growth in tokenized real-world assets, and a notable drop in volatility.
Their Q4 Digital Assets Report highlights how Bitcoin’s behaviour has shifted as regulated investment channels expand, and liquidity becomes more stable across spot, derivatives, and on-chain markets.
The findings show how ETF flows, settlement activity, and broader adoption of tokenised instruments are shaping a more mature phase in the digital asset ecosystem.
These structural changes are defining how capital moves through Bitcoin in 2025.
Institutional flows reshape the cycle
The report estimated that Bitcoin has absorbed around $732 billion in new capital during this cycle.
This has occurred alongside a clear decline in one-year realised volatility, which has fallen by nearly half.
Glassnode linked this trend to increased depth across major markets and a larger share of trading driven by institutional strategies.
Glassnode also reported that Bitcoin settled approximately $6.9 trillion over the past 90 days.
This puts Bitcoin in a range comparable to payment networks such as Visa and Mastercard.
Even with more trading moving into ETF and brokerage channels, the report found that Bitcoin and stablecoins still dominate value transfer on public blockchains.
ETF channels deepen liquidity
ETF-linked demand has reshaped how investment enters and exits Bitcoin.
Instead of relying mainly on on-chain movement or exchange activity, a greater share of flows now passes through regulated investment vehicles.
According to the report, this shift has encouraged smoother liquidity conditions and fewer sharp price changes in spot markets.
Traditional market makers and arbitrage firms have increased their presence due to ETF participation.
Their involvement has tightened spreads and reduced disruption during periods of heightened selling pressure.
This development reflects a broader alignment between digital asset markets and established financial infrastructure.
Tokenized RWAs accelerate
Tokenized real-world assets have expanded from $7 billion to $24 billion within one year.
Glassnode stated that this rise reflects stronger institutional demand, including interest from pension funds, hedge funds, and corporations that want on-chain exposure to familiar financial instruments.
Tokenized funds have gained momentum as asset managers test new distribution models and investors seek simplified access to traditional assets.
Platforms involved in tokenised RWAs have strengthened custody, settlement, and compliance systems.
This foundation has encouraged consistent inflows throughout 2025, supporting a growing segment of the market that links traditional assets with blockchain settlement rails.
Stablecoin role strengthens
Glassnode described the market structure as larger and more stable than in previous cycles.
The data indicated deeper liquidity across spot, derivatives, and on-chain channels, which has contributed to a more measured trading environment.
Reduced volatility has become a defining feature of the cycle, shaped by institutional trading strategies that tend to use steady allocation models.
Stablecoins continue to serve as key connectors between traditional and digital financial systems.
The report stated that stablecoin settlement demand remains substantial across centralised and decentralised platforms.
Glassnode characterised the dual-rail system created by stablecoins and traditional infrastructure as a permanent part of the ecosystem, supporting both institutional flows and retail trading activity.
Analysts referenced in the report expect institutional participation to expand as tokenised funds gain broader acceptance.
Glassnode presented this phase as a turning point marked by heavier institutional flows, rising tokenisation, and reduced volatility.
These factors suggest that Bitcoin and the wider digital asset sector are moving into a more structurally mature environment in 2025.