Bitcoin's Much Less Volatile Than It Used to Be. BlackRock Says It Played a Part in That.

Bitcoin (CRYPTO: BTC) has been trading in a tight range for over a month since its push above $80,000 in August.

BlackRock’s (NYSE:BLK) Head of U.S. Equity ETFs Jay Jacobs says that is a feature, not a bug.

What Jacobs Said About Bitcoin’s Volatility

Jacobs joined Anthony Pompliano’s podcast Thursday to point out that volatility for Bitcoin has compressed from around 80 to the 35 to 40 range.

One of the drivers of this development: the buildout of BlackRock’s IBIT (NASDAQ:IBIT) and the options market around it/

More participants means more long-term buyers acting as a counterbalance to short-term traders, making Bitcoin accessible to institutions that previously could not justify the risk.

“When we end up in an environment where people are more concerned about geopolitics or fiat currency debasement, Bitcoin should benefit,” he said, adding that the fundamental diversifying nature of Bitcoin still holds even as the investor base has shifted.

Why IBIT Changed the Conversation

Before IBIT, financial advisers and institutions could avoid the Bitcoin question entirely because they had no easy way to access it. 

Once it became as simple as clicking a button on a brokerage account, it forced a decision: does Bitcoin belong in a portfolio?