More than $1 billion flowed out of digital asset investment products last week. With investors cutting risk exposure amid rising Middle East tensions, blockchain outlet Cointelegraph reported this shift in institutional demand on Thursday local time.

CoinShares data showed the outflows were among the biggest weekly withdrawals so far this year. Redemptions were concentrated in bitcoin and ethereum-related products. As expectations for a sustainable ceasefire between the United States and Iran weakened, money pulled back from risk assets broadly, including bitcoin.

Still, cumulative flows this year remain positive. Crypto exchange-traded products have seen net inflows of about $4.9 billion since the start of the year. The latest outflows showed that even if institutional demand is stronger than in the previous cycle, digital assets are still being classified as a risk asset class when volatility rises.

Tether also strengthened its control over Twenty One Capital. Tether acquired about a 26 percent stake held by SoftBank. The deal value was not disclosed. Twenty One Capital is preparing to expand into bitcoin-related financial services beyond accumulating bitcoin, and currently holds more than 42,000 BTC.

Bitcoin miners are also shifting their focus toward AI infrastructure. Bernstein assessed that these companies are emerging as infrastructure partners for AI developers, supported by access to large-scale power and data centre capacity. Mining firms are diverting part of their existing mining equipment to high-performance computing work for AI customers.

In the prediction market sector, Polymarket is working with Nasdaq to launch a market aimed at the future value of private companies. Users will be able to trade based on valuation targets, IPO timing and over-the-counter market activity. Polymarket is expanding prediction markets that were centred on elections and macro events into venture capital and startup investing.