Declining Bitcoin Volatility Has Plenty of Benefits

Core Insights - Bitcoin has historically been viewed as a volatile asset, but its volatility is currently decreasing, which may positively impact spot prices and ETFs like the Coinshares Valkyrie Bitcoin Fund (BRRR) [2][4][8] Volatility Trends - The three- and six-month rolling volatility of bitcoin has reached historically low levels, continuing even as bitcoin set new record highs in May, July, and August [3][8] - The narrowing range of bitcoin's price swings is attributed to the introduction of new bitcoin-related financial products, such as futures contracts and ETFs, which have attracted a broader range of investors [5][8] Institutional Adoption - There is a growing trend of institutional investors embracing bitcoin, exemplified by U.S. Bank's recent decision to reintroduce cryptocurrency custody services for professional investors [6][8] - U.S. Bank has expanded its offerings to include bitcoin ETFs, providing comprehensive solutions for managers seeking custody and administration services [7] Market Implications - Despite a slump in August, bitcoin's volatility remains low, which is expected to attract more investors into the cryptocurrency space, potentially benefiting BRRR [8]