Bitcoin explanatory power 30–46%… volatility in 6 sectors 49–85%

Grayscale's analysis of its FTSE crypto sector indices found annualized volatility across six crypto sectors—currencies, smart contract platforms, financials, utilities and services, consumer and culture, and AI—ranged from 49% to 85%, all exceeding bitcoin's roughly 43% volatility over the trailing three years. Bitcoin explained only 30% to 46% of each sector's return variation, underscoring that sector-specific drivers dominate. Grayscale said each sector has distinct use cases, user bases, and demand sources, and that correlations between sectors have fallen below prior peaks. The findings matter for portfolio managers treating crypto as a single risk bucket, since sector exposures carry materially different volatility profiles. Next, watch whether these lower cross-sector correlations persist as institutional products increasingly target individual crypto sectors rather than broad beta.