Glassnode: Tokenized RWA Soar to $24 Billion, Bitcoin Settlement Volume Rivals Visa

Glassnode and Fasanara Capital’s Q4 digital asset report shows that the scale of tokenized RWAs soared from $7 billion to $24 billion in one year, growing more than 3.4x and marking the strongest stage of institutional adoption. In the past 90 days, Bitcoin settlement volume reached $6.9 trillion, putting it on par with payment giants such as Visa and Mastercard.

Institutional Drivers Behind 3.4x Growth in Tokenized RWA Over One Year

(Source: Glassnode)

The scale of tokenized real-world assets grew from $7 billion to $24 billion in just one year—a 3.4x growth rate that far surpasses the expansion speed of traditional financial products. Glassnode points out that as asset management firms seek new distribution models and investors look for easier access to traditional financial instruments, tokenized funds have become especially favored.

The expansion of tokenized RWAs reflects widespread institutional interest in on-chain investments from pension funds, hedge funds, and corporations. These institutions want exposure to on-chain investment opportunities without making directional bets on mainstream cryptocurrencies. Tokenized RWAs offer a perfect middle ground—enjoying the efficiency and transparency of blockchain technology while holding familiar traditional assets such as government bonds, real estate, and equities.

This rapid growth is backed by continuous improvements in custody, compliance, and settlement infrastructure. The biggest concerns for traditional financial institutions regarding crypto have always been custody security and regulatory compliance. With the maturation of specialized custody solutions from Fireblocks, Anchorage Digital, and BitGo, as well as increasing regulatory clarity around the world, the barrier to institutional entry has been greatly reduced. Glassnode expects continuous capital inflows into this sector through 2025.

By asset class, tokenized US Treasuries currently make up the largest sub-sector, accounting for over 60% of total tokenized RWA volume. BlackRock’s BUIDL fund and Franklin Templeton’s on-chain money market fund have both achieved significant success. These products allow investors to hold yield-generating assets on-chain while maintaining the same legal protection as traditional financial products.

Bitcoin Absorbs $732 Billion in Capital; Volatility Halved

Glassnode’s report estimates that Bitcoin has absorbed around $732 billion in new capital this cycle, a level of inflow accompanied by a sharp decline in volatility. One-year realized volatility has nearly halved, indicating that as institutional investors play a bigger role, both market size and stability are growing. This is one of the clearest signs of Bitcoin market maturation.

The $732 billion capital inflow is stunning. For comparison, at the peak of the 2017 bull market, Bitcoin’s total market cap was about $300 billion, while this cycle’s new capital inflows alone are more than double that amount. These inflows mainly come from three channels: spot Bitcoin ETFs, direct institutional purchases, and corporate treasury allocations. Spot ETFs such as BlackRock’s IBIT and Fidelity’s FBTC rapidly attracted tens of billions of dollars after launch.

The halving of volatility is significant. Traditionally, Bitcoin is known for high volatility, which is a major reason many institutional investors have stayed away. When volatility drops, price swings narrow, making it more attractive for institutions seeking stable returns. Lower volatility also enables more rational derivatives pricing, as options sellers no longer need to charge excessive volatility premiums.

This low-volatility environment is the result of multiple factors. First, the introduction of ETFs has provided ongoing liquidity support, reducing the impact of large trades on price. Second, institutional investors typically use long-term holding strategies, unlike retail investors who trade more frequently, which lowers market turnover. Third, the maturity of the derivatives market allows professional traders to hedge risk more effectively, reducing sharp price swings caused by one-sided bets.

Bitcoin’s $6.9 Trillion Settlement Volume Rivals Traditional Payment Giants

Settlement volume remains a key metric for measuring scale. Glassnode data shows that in the past 90 days, Bitcoin settlement volume reached about $6.9 trillion, putting it on par with, or even surpassing, payment giants like Visa and Mastercard. This data breaks the traditional criticism that “Bitcoin is not practical,” proving that the Bitcoin network is handling real, large-scale value transfers.

A $6.9 trillion 90-day settlement volume implies an annualized settlement volume of about $27.6 trillion. For comparison, Visa’s global payment transaction volume in 2024 is about $14 trillion, and Mastercard’s is about $9 trillion. Bitcoin reaching or even surpassing the settlement volume of these two major payment networks shows it has evolved from a “speculative tool” to a “settlement infrastructure.”

Even as more trading activity shifts to off-chain ETFs and brokerage channels, Bitcoin and stablecoins continue to dominate value transfer on public ledgers. This phenomenon reveals an important fact: institutions may use ETFs for investment allocation, but when it comes to large cross-border transfers, inter-company settlements, or asset custody, they still choose to use the Bitcoin network directly, as it provides final settlement guarantees that cannot be censored or frozen by third parties.

Stablecoins play a key role in this ecosystem. USDT and USDC also have huge settlement volumes, complementing Bitcoin. Bitcoin is mainly used for value storage and large settlements, while stablecoins have more advantages in daily transactions and cross-border payments. This dual-track structure has become an inherent feature of the ecosystem, not just a temporary transitional solution.

ETFs Reshape Capital Flows and Reduce Market Dislocation

Capital inflows into ETFs have reshaped the way capital enters and exits assets. The shift toward regulated ETF products channels large amounts of capital into traditional market pipelines, helping to maintain more stable liquidity and reduce the frequency of large price swings in spot trading. Growing ETF demand has also prompted more traditional institutions to participate in market making and arbitrage, which in turn narrows spreads and reduces market dislocation during sell-off periods.

Since spot Bitcoin ETFs were approved in January 2024, they have become one of the fastest-growing ETF product categories in history. BlackRock’s IBIT surpassed $50 billion in assets in less than a year after launch, setting a new record for the ETF industry. This explosive growth shows that traditional investor demand for Bitcoin far exceeds market expectations.

The ETF mechanism creates a stable capital inflow channel. When investors purchase ETF shares, Authorized Participants must buy an equivalent amount of Bitcoin and deposit it with a custodian to create new ETF shares. This mechanism ensures that every ETF share is backed by actual Bitcoin, while also providing continuous buying support for the market. Conversely, when investors redeem ETF shares, Bitcoin is released back into the market. This two-way mechanism offers a smoother path for capital in and out than before.

Glassnode states that this feedback loop helps create a more resilient market than in previous cycles. In past bull-bear transitions, panic retail sell-offs often caused waterfall-style declines. But in a market structure dominated by ETFs, the long-term holding strategies of institutional investors and the active participation of professional arbitrageurs together provide deeper liquidity buffers for the market.

Market Maturation Enters a New Stage

Glassnode adds that the market structure is now larger and more stable. Lower volatility, deeper liquidity, and a higher proportion of institutional capital inflows have all mitigated some of the extremes seen in previous cycles. The company describes the market as “calmer, larger, and more institutionalized,” a theme that is reflected in derivatives markets, spot markets, and on-chain data.

As 2025 progresses, analysts expect institutional participation to deepen further, especially as tokenized funds see wider adoption. As confidence grows in regulated access points and more traditional assets appear on-chain, the gap between digital and traditional markets is narrowing.

Glassnode’s report views the current cycle as a turning point in market structure. Increased institutional capital inflows, lower volatility, and the rapid growth of tokenized RWAs together indicate the industry is entering a structurally more mature stage, even as the macroeconomic environment continues to influence risk appetite.