Bitcoin’s latest market cycle is shaping up to be one of its most mature, with new Glassnode data showing a surge in institutional participation, calmer trading conditions and rapid growth in tokenized real-world assets.
Glassnode and Fasanara Capital, in their Q4 Digital Assets Report, say the structure of the market has shifted meaningfully as larger investors deepen their presence.
The report estimates that Bitcoin has absorbed about $732B in new capital this cycle, a level of inflow that has arrived alongside a sharp drop in volatility.
One-year realized volatility has nearly halved, suggesting a market that is growing both in size and in stability as institutional players take a larger role.
Bitcoin has added $732B in new capital this cycle, with 1YR realized volatility nearly halved.
— glassnode (@glassnode) December 3, 2025
The market is trading calmer, larger, and more institutional. Our Q4 Digital Assets Report with @FasanaraDigital breaks down the structural shifts.
Settlement volumes remain a key sign of scale. Glassnode says Bitcoin settled roughly $6.9T over the past 90 days, placing it on par with or above payment giants Visa and Mastercard.
Even as more activity moves off-chain into ETFs and brokerage channels, Bitcoin and stablecoins continue to dominate value transfer on public ledgers.
Flows into ETFs have reshaped the way capital enters and exits the asset. The shift toward regulated wrappers is steering large volumes through traditional market rails, which has contributed to steadier liquidity conditions and reduced the frequency of large swings in spot trading.
At the same time, tokenization has become one of the fastest-growing themes in digital assets.
Tokenized real-world assets have expanded from $7B to $24B in a single year, marking their strongest phase of institutional adoption. Glassnode notes that tokenized funds in particular are gaining traction as asset managers search for new distribution models and investors seek simpler access to traditional instruments.
Image Source: Glassnode/ Fasanara Digital
The expansion of tokenized RWAs reflects broader interest from pension funds, hedge funds and corporates that want on-chain exposure without taking directional bets on major cryptocurrencies. This segment has been drawing consistent inflows through 2025 as platforms improve custody, compliance and settlement infrastructure.
Glassnode adds that market structure is both larger, and calmer. Lower volatility, deeper liquidity and a growing share of institutional flows have reduced some of the extremes that defined earlier cycles.
The firm describes the market as trading “calmer, larger, and more institutional,” a theme echoed across derivatives, spot markets and on-chain data.
Despite the calmer backdrop, activity has not faded. Stablecoins continue to serve as the main bridge between traditional and digital markets, and settlement demand remains heavy across both centralized and decentralized venues. The report suggests this dual-rail structure is now a feature of the ecosystem rather than a temporary bridge.
ETF demand has also encouraged more market-making and arbitrage participation from traditional firms, which in turn has tightened spreads and reduced dislocations during selloffs. Glassnode says this feedback loop is contributing to a more resilient market than in prior cycles.
As 2025 progresses, analysts expect institutional involvement to deepen further, particularly as tokenized funds see broader adoption. With growing comfort around regulated access points and more on-chain representations of traditional assets, the divide between digital and conventional markets is narrowing.
Glassnode’s report frames the current cycle as a turning point in market composition. The combination of heavier institutional flows, reduced volatility and the rapid rise of tokenized RWAs points to a sector that is entering a more structurally mature phase, even as broader macro conditions continue to shape risk appetite.
The post Institutional Activity Climbs This Bitcoin Cycle, Tokenized RWAs Reach $24B: Glassnode appeared first on Cryptonews.
BlackRock executives are warning that the global financial system could be facing its most profound transformation since the introduction of electronic messaging in the 1970s, driven by blockchain-based tokenization.
In a recent column for The Economist, CEO Larry Fink and COO Rob Goldstein called tokenization the “next major evolution in market infrastructure.”
They emphasized its potential to move assets more quickly and securely than legacy financial systems, showing a shift that could reshape how markets operate worldwide.
Tokenization, which records ownership of assets on digital ledgers, allows stocks, bonds, real estate, and other holdings to exist as verifiable digital records that can be traded and settled without traditional intermediaries.
The approach aligns with BlackRock’s long-standing commitment to digital markets, dating back to Fink’s 2022 remarks that the next generation of securities will be tokenized.
Fink and Goldstein acknowledged that tokenization was initially overshadowed by the speculative crypto boom.
Yet, beneath the noise, the technology has the potential to expand investable assets and enable near-instant settlement, reducing reliance on manual processes and bespoke recordkeeping that have persisted for decades.
The executives cautioned, however, that adoption will be gradual, likening the process to a “bridge being built from both sides of a river,” connecting traditional financial institutions with digital-first innovators.
While tokenization promises efficiency and broader market access, it also carries risks that could mirror historical financial shocks.
Analysts point to several mechanisms that could amplify losses.
Increased systemic interconnectedness could make widely shared ledgers a single point of failure, while automated trading on programmable ledgers could accelerate market shocks, potentially triggering rapid “flash crashes.”
Legal ambiguities surrounding ownership rights and settlement finality, coupled with cybersecurity vulnerabilities, could exacerbate operational risks.
Additionally, fragmented markets, high leverage, and concentration of infrastructure among a few dominant players may increase systemic fragility.
Experts warn that a large-scale operational failure or confidence crisis could produce losses reminiscent of the post-Bretton Woods era in the early 1970s.
European regulators are increasingly focused on the growth of tokenized financial assets, balancing innovation with oversight.
Natasha Cazenave, Executive Director of ESMA, outlined the potential and risks of wrapping conventional instruments in digital layers.
— Cryptonews.com (@cryptonews) September 2, 2025
Once a niche area, tokenized assets now represent a global market of roughly $600 billion, with the issuance of tokenized fixed-income instruments exceeding €3 billion in 2024.
The Skynet RWA Security Report projects that tokenized real-world assets could reach $16 trillion by 2030, with Europe positioned to lead.
— Cryptonews.com (@cryptonews) August 25, 2025
Pilot projects by Société Générale, Santander, the European Investment Bank, and Germany’s Ministry of Finance demonstrate growing interest, though the market remains fragmented.
Cazenave emphasized that regulatory alignment is critical to ensure investor protections and prevent instability.
Globally, tokenization is reshaping access to private markets. Institutional investors expect tokenized instruments to make up 10–24% of portfolios by 2030.
— Cryptonews.com (@cryptonews) October 10, 2025
Currently, digital assets average 7% of institutional holdings, expected to rise to 16% within three years, driven by tokenized equities, fixed income, and digital cash, according to State Street research.
Challenges remain on the issuer side. Infrastructure for identity verification, compliance, and cap-table management lags behind front-end trading platforms, slowing onboarding, complicating reconciliation, and limiting secondary market liquidity.
Authorities worldwide are taking note. In November, the IMF highlighted tokenization’s potential to accelerate transactions and reduce costs, while cautioning that automated markets could amplify volatility and systemic risks.
— Cryptonews.com (@cryptonews) October 8, 2025
Notably, in the UK, a “digital markets champion” and the Dematerialisation Market Action Taskforce are overseeing the issuance of digital gilts on distributed ledgers.
Data from RWA(.)xyz shows the distributed asset market currently represents $18.41 billion, with $391.55 billion in represented asset value across more than 555,000 asset holders.
The post BlackRock CEO: Tokenization to Trigger Finance’s Biggest Overhaul Since the 1970s — How? appeared first on Cryptonews.
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