Would bitcoin's volatility drop when big institutions get involved in it?

[pickledflu]

I believe that when institutions suddenly had their hands over Bitcoin, it can make big changes to the transaction and it can either be beneficial or not, depending on the institution.

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[drachman]

Is it true that the high volatility of bitcoin would drop when big institutions get involved in it as now we see big financial firms entering bitcoin market and wall street firms getting ready to do so?

The amount of money in bitcoin does not affect the volatility, bitcoin is just as volatile as ever, if bitcoin was worth 100k we will still see 40% drops in the  price in the matter of weeks the difference is that the amount of dollars won or lost at that stage will be enormous.

[richardsNY]

As long as institutions stick to Bitcoin tied instruments, we'll keep the heavy fluctuations since the price of these instruments is directly connected to what happens on our traditional exchanges. The future markets are a perfect example of that. However, if institutions have the option to trade with actual Bitcoins within a centralized and regulated environment, it means that we'll probably see a huge number of coins flow into their markets, which might actually result in less volatility, but what does less volatility in this market actually mean? From 30% in a day to just 10-15% per day? Institutional capital will never be able to tame Bitcoin entirely.