Core Insights - Bitcoin is undergoing a transition, with declining volatility and increasing distribution among investors [1][2] - Early investors are reducing their exposure, suggesting a shift towards a more institutionally diversified market [3] - Bitcoin's correlation with traditional assets has decreased, making it a viable option for portfolio diversification [4][5] Group 1: Volatility and Ownership Concentration - Bitcoin's implied and realized volatility has decreased to 30 and below in some instances, addressing institutional concerns [2] - Ownership concentration is gradually dispersing, with large wallets still holding about one-third of the supply, but the number of outstanding shares in Bitcoin ETFs is increasing [2] Group 2: Market Dynamics and Investment Strategies - The current phase is likened to traditional monetization events, where early backers are diversifying their holdings after significant appreciation [3] - Investors holding substantial amounts of Bitcoin are trimming their positions to explore opportunities in other sectors, particularly AI and Chinese equities [3][4] Group 3: Portfolio Inclusion - Bitcoin is being positioned as a diversified asset in portfolio theory, with lower volatility and correlation to traditional assets [5] - The expectation is that fundamentals such as tokenization and regulatory clarity will drive significant growth in Bitcoin by 2026 [5]