#crypto Institutional adoption continued to reshape the digital asset market this week, even as geopolitical tensions reminded investors that crypto remains sensitive to broader macro conditions.
Digital asset funds suffered more than $1 billion in outflows as traders reduced risk exposure amid fading hopes for a durable ceasefire between the United States and Iran. At the same time, Tether tightened its grip on Twenty One Capital, Bernstein argued that Bitcoin miners are carving out a strategic role in the race to build artificial intelligence infrastructure, and Polymarket teamed up with Nasdaq to launch prediction markets tied to private companies.
Crypto funds bleed $1 billion as geopolitical tensions trigger risk-off move;
Digital asset investment products posted more than $1 billion in outflows last week as escalating tensions in the Middle East sent investors to the sidelines.
According to CoinShares data, the withdrawals marked one of the largest weekly reversals so far this year, with Bitcoin and Ether products accounting for the bulk of the redemptions. The sell-off came as markets dialed back hopes for a durable ceasefire between the US and Iran, prompting a broader flight from risk assets despite Bitcoin’s reputation as a macro hedge
The pullback underscores how quickly sentiment can shift when geopolitical shocks hit global markets. Institutional demand for crypto remains structurally stronger than in prior market cycles, but the latest outflows suggest allocators are still treating digital assets as part of the broader risk-on complex during periods of heightened volatility.
Tether deepens its Bitcoin treasury bet with SoftBank-backed Twenty One;
Tether has acquired SoftBank’s stake in Twenty One Capital, tightening its grip over one of the crypto industry’s largest corporate Bitcoin vehicles.
The stablecoin issuer purchased the Japanese conglomerate’s roughly 26% stake in the company for an undisclosed amount as Twenty One Capital prepares to broaden its business beyond Bitcoin accumulation into Bitcoin-related financial services. Led by Strike founder Jack Mallers, Twenty One launched with backing from Tether, Bitfinex, Cantor Fitzgerald and SoftBank, and has accumulated more than 42,000 BTC on its balance sheet.
The transaction further consolidates Tether’s influence over the company as institutional demand for Bitcoin treasury exposure expands