Institutional Engagement Rises in Bitcoin Market: Tokenized RWAs Reach $24 Billion, According to Glassnode

Recent data from Glassnode indicates that Bitcoin's current market cycle is evolving into one of its most sophisticated yet, marked by increased institutional involvement, stabilized trading dynamics, and the rapid growth of tokenized real-world assets (RWAs).

Key Takeaways

Bitcoin has seen approximately $732 billion in new capital this cycle, coupled with reduced volatility.
Settlement volumes in Bitcoin have reached about $6.9 trillion in the last three months, competing with processing giants like Visa and Mastercard.
The market for tokenized real-world assets has surged from $7 billion to $24 billion in a year, showcasing strong institutional interest.
A shift towards regulated investment products has improved liquidity and stabilized trading conditions.
Analysts predict a further increase in institutional engagement, narrowing the gap between traditional and digital assets.

Glassnode

Bitcoin’s Settlement Volume Surges, Matching Payment Giants

Glassnode reports that Bitcoin's settlement volumes have reached an impressive $6.9 trillion over the past 90 days, placing it on equal footing or even surpassing well-known payment processors like Visa and Mastercard.

Even with a noticeable shift of trading activities moving off-chain into ETFs and brokerage frameworks, Bitcoin and stablecoins continue to play a critical role in value transfers on public ledgers. The increased investments in ETFs signify a transformation in how capital is integrated into the market. This trend towards regulated structures is facilitating larger volumes to flow through traditional channels, ultimately helping to enhance liquidity and mitigate severe fluctuations in spot trading.

Tokenized Assets on the Rise: New Distribution Avenues for Asset Managers

Tokenization is swiftly emerging as one of the most significant trends in the digital asset space. The market for tokenized real-world assets has expanded dramatically from $7 billion to $24 billion within just one year, indicating a robust phase of institutional acceptance. According to Glassnode, tokenized funds are becoming a focal point as asset managers explore novel distribution strategies and as investors seek easier access to traditional financial instruments.

Image Source: Glassnode/ Fasanara Digital

The rise of tokenized RWAs points to a growing interest from pension funds, hedge funds, and corporate entities that wish to gain on-chain exposure without making directional bets on major cryptocurrencies. This area has experienced consistent inflows throughout 2025 as platforms enhance their custody, compliance, and settlement mechanisms.

Glassnode Observes a More Stable and Mature Market

Glassnode emphasizes that the current market is not only larger but also more stable. The combination of lower volatility, improved liquidity, and an increasing share of institutional flows has diffused some of the extremes characterizing earlier cycles.

The firm notes that the market is now trading "calmer, larger, and more institutional," a trend reflected across derivatives, spot markets, and on-chain metrics. Despite this stable backdrop, trading activity remains robust. Stablecoins continue to act as a crucial link between traditional and digital markets, with strong demand for settlement across both centralized and decentralized platforms. This dual-rail structure has become a recurring characteristic of the crypto ecosystem rather than a fleeting phase.

How Tokenized RWAs Are Shaping Market Evolution and Expanding Access for Investors

The demand for ETFs is also encouraging traditional firms to engage more in market-making and arbitrage activities, which are helping to tighten spreads and mitigate price dislocations during selloffs. Glassnode suggests that this positive feedback loop is fostering a more resilient market compared to past cycles.

As 2025 advances, analysts anticipate that institutional participation will deepen, especially as tokenized funds gain broader recognition. With increasing confidence around regulated entry points and more on-chain versions of traditional assets, the barrier between digital currencies and conventional markets is becoming less pronounced.

Glassnode's report positions the current market cycle as a pivotal moment in market structure. The convergence of substantial institutional inflows, diminished volatility, and the swift rise of tokenized RWAs signals a sector transitioning into a more sophisticated phase, despite ongoing broader macroeconomic influences that affect risk appetite.