Crypto World
Spot Bitcoin ETFs See Five Weeks of Net Withdrawals Totaling $3.8B
US spot Bitcoin ETFs have extended a five-week stretch of net outflows, with investors pulling roughly $3.8 billion from the products across the period. The latest weekly snapshot shows continued pressure even as inflows emerged on select days, underscoring a broader de-risking phase among institutional holders. In aggregate, spot Bitcoin ETFs have drawn about $54.01 billion in net inflows since inception, while total assets sit around $85.31 billion, a share of roughly 6.3% of Bitcoin’s overall market capitalization. Ether ETFs have mirrored the mood on the downside, posting a fifth consecutive week of net selling, even as pockets of buying appeared on specific dates.
Key takeaways
- Five consecutive weeks of net outflows from US spot Bitcoin ETFs, totaling about $3.8 billion, with the trend anchored in broader risk-off sentiment.
- The week ended Jan. 30 marked the largest single pull, about $1.49 billion, illustrating how quickly allocations can swing when macro headlines intensify.
- Last week saw mixed activity, including roughly $315.9 million in net outflows but with some days posting inflows, indicating evolving but uneven demand.
- Ether (ETH) ETFs followed a similar pattern, recording net outflows of around $123.4 million for the week, even as selective daily inflows appeared.
- Since launch, spot Bitcoin ETFs have accumulated approximately $54.01 billion in net inflows, with total assets near $85.31 billion, representing about 6.3% of Bitcoin’s market capitalization.
Sentiment: Bearish
Price impact: Negative. The persistent outflows suggest selling pressure from institutional reallocations and risk-off positioning, even as occasional inflows temper the pace.
Market context: The data arrive as traders weigh macro developments, including geopolitical dynamics and tariff news, which have sharpened risk-off tendencies across asset classes. Amid a fragile liquidity backdrop, crypto markets remain sensitive to headline risk and shifting expectations for central bank policy.
The latest numbers align with a broader pattern observed in recent weeks: institutional de-risking rather than a wholesale loss of interest in crypto assets. Vincent Liu, chief investment officer at Kronos Research, framed the outflows as evidence that portfolio managers are trimming risk exposures rather than exiting the asset class altogether. “The withdrawals reflect de-risking in response to geopolitical tensions and macro uncertainty,” Liu told this publication. “Market inflows will be dependent on macro events like incoming Thursday’s initial jobless claims, as weaker data could revive expectations for future rate cuts and help support sentiment currently at 14 extreme fear on the crypto fear and greed index.”
Why it matters
The sustained outflows from spot Bitcoin ETFs highlight a meaningful dynamic in how institutions approach crypto exposure during periods of heightened macro risk. While the asset class still sits within a broader allocation framework for many long-term investors, near-term positioning appears to be guided by a careful risk assessment rather than aggressive capitalization. The fact that outflows are occurring across multiple weeks, rather than isolated incidents, signals a rebalancing mindset rather than a wholesale retreat from crypto.
From a market structure perspective, the outflows matter because ETFs are a primary on-ramp for many traditional investors. They offer familiar mechanics and regulated exposure, which means the behavior of ETF flows can influence price discovery, liquidity, and volatility around spot markets. The correlation with macro headlines — such as jobless claims data or trade developments — underscores how crypto markets remain part of a global risk-off narrative, even as they retain the potential for high beta moves when risk appetite returns.
Meanwhile, the persistence of inflows on certain days shows there is ongoing, if uneven, demand for crypto exposure at the institutional level. The net inflows since inception remain sizable, underscoring that crypto remains a fixture in diversified portfolios for many buyers who still view the space as part of a longer-term thematic thesis. The market is watching whether a shift in macro cues — perhaps softer data or signs of policy accommodation — could unlock a renewed wave of ETF buying, particularly as the crypto fear and greed index signals a more cautious sentiment among traders.
What to watch next
- Upcoming macro data releases, including initial jobless claims, which could influence near-term risk appetite and ETF flows.
- Next-week updates on spot ETF allocations and whether any positive sessions in Bitcoin or Ether ETFs reverse the five-week downtrend.
- Regulatory and policy developments that alter the risk-reward calculus for regulated crypto exposure.
- Any notable shifts in long/short positioning among institutions that could hint at a broader reallocation cycle.
Sources & verification
- SoSoValue data on weekly net flows for US spot Bitcoin and Ether ETFs (spot ETF fund flow page).
- Vincent Liu, Kronos Research CIO, remarks on de-risking and macro drivers in an interview addressing ETF outflows.
- Bloomberg reporting on net inflows for Bitcoin ETFs despite recent outflows (as referenced in related analyses).
- Historical context of cumulative ETF inflows and total assets for spot Bitcoin ETFs since launch.
Market reaction and near-term outlook for spot ETF flows
Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) exchange-traded products have been navigating a delicate balance between risk-off dynamics and a persistent demand for regulated crypto exposure. The five-week streak of net outflows from US spot Bitcoin ETFs, totaling around $3.8 billion, reflects a market where institutions are recalibrating risk rather than retreating from the asset class, according to market observers. The weekly data show a notable swing within the period: a peak weekly outflow of approximately $1.49 billion in the week ending Jan. 30, underscoring how quickly sentiment can shift in response to macro headlines. While there were days of inflows — including a Friday that added roughly $88 million — the week closed with a negative tilt, reinforcing the overarching trend toward de-risking during periods of heightened uncertainty.
The Ether ETF picture mirrors Bitcoin’s, with five consecutive weeks of net selling and a weekly tally that reached about $123.4 million in outflows last week. There were pockets of buying on particular days, such as inflows near $48.6 million on Feb. 17 and $10.3 million on Feb. 13, but these gains were not enough to reverse the cumulative downward trajectory of flows for Ether, reflecting a broader risk-off environment that has weighed on top-tier crypto exposures across the board. The divergence between intraday inflows and the week’s net negative outcome highlights how price reaction and liquidity conditions can differ from calendarized flow data, particularly in markets that operate under tighter liquidity conditions and heightened counterparty risk awareness.
Beyond the short-term movement, the longer-term context remains constructive in a cumulative sense. Spot Bitcoin ETFs have drawn about $54.01 billion in net inflows since launch, while total assets stand near $85.31 billion, representing roughly 6.3% of Bitcoin’s market capitalization. That scale indicates that regulated products continue to play a meaningful role in channeling institutions’ crypto exposure into traditional portfolios, even as daily flows swing with macro headlines. Some observers point to the possibility that macro catalysts could reignite inflows; others warn that the current risk-off backdrop could persist until clearer signals emerge from the policy front or labor market data. In any case, the overall trajectory is one of gradual, regulated access to exposure, rather than rapid, speculative allocation. As markets await further clarifications on policy and macro data, the path of ETF flows will likely remain a barometer of institutional appetite for regulated crypto assets.
What it means for users and investors
The ongoing flow dynamics have practical implications for users ranging from long-term holders to active traders. For investors seeking regulated exposure, the persistence of outflows may imply tighter liquidity on the ETF side in the short term, potentially widening bid-ask spreads on pullback days. For builders and ecosystem participants, the data highlight the importance of robust on-chain analytics and transparent product disclosures, helping users navigate a landscape where inflows and outflows can diverge from underlying price action for extended periods.
On the regulatory front, the resilience of spot ETF products suggests that, for a broad segment of the market, the regulated vehicle remains an attractive conduit for exposure. However, the macro overlay remains the primary determinant of flows in the near term. The crypto markets are in a phase where risk tolerance is sensitive to data surprises and geopolitical developments, reinforcing the idea that ETF flows are not a separate universe from macro risk; they are a lens through which investors adjust positions as incentives and risks shift.
What to watch next
- Upcoming macro headlines, especially labor market data, that could tilt sentiment toward or away from risk assets.
- Any shifts in ETF flow data in the following weeks that indicate a renewed appetite for regulated crypto exposure.
- Regulatory developments that could affect the structure, liquidity, or accessibility of spot ETFs in the United States.
Sources & verification
- SoSoValue ETF flow pages documenting weekly and cumulative spot Bitcoin and Ether ETF flows.
- Vincent Liu’s examination of de-risking and macro drivers for ETF outflows (Kronos Research).
- Bloomberg references to net inflows in Bitcoin ETFs against the backdrop of recent outflows.
Is ETH finally going to rebound decisively, or will there be another crash to new lows.
Ethereum continues to struggle to reclaim the coveted $2,000 psychological level, as each attempt to do so results in a subsequent rejection and correction.
Popular analyst Ali Martinez weighed in on the asset’s recent performance and explained that it’s forming a bullish flag. However, there’s a major catch in his post, which could actually mean trouble ahead for ETH.
Ethereum $ETH is forming a bullish flag!
There’s just one twist… The chart is inverted. pic.twitter.com/Kb8eamJOMF
— Ali Charts (@alicharts) February 20, 2026
The “inverted” bullish flag shows that ETH has actually been in a consistent downtrend for weeks, but it has managed to compress within a tighter range more recently. Martinez believes a bigger move is in the making, but it could push the asset to new local lows of under $1,400.
Daan Crypto Trades also brought up ETH’s underwhelming performance as of late, indicating that the start of 2026 has been worse than how it moved in early 2025.
The analyst outlined hopes that the largest altcoin could finally rebound in the following few months, since the March-to-May period is historically more beneficial for it.
$ETH Has started the year of worse than last year so far. Historically, March through May are good months for ETH.
But we know how the market is all over the place recently and that there’s been pretty much zero correlation with other risk assets.
This makes for an awful… pic.twitter.com/CBAfLTduHx
— Daan Crypto Trades (@DaanCrypto) February 21, 2026
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Another unfavorable development within the Ethereum investor ecosystem is the net flows within the spot ETH ETFs. Last week was in the red once again, with roughly $113 million leaving the funds.
On the opposite side, BitMine continues to accumulate. The Tom Lee-chaired company bought another 45,759 ETH last week, and now holds 4,371,497 tokens, valued at almost $8.7 billion. The company is down $8 billion on its Ethereum position, given its average entry cost of $3,820.
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Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.
I’ve watched enough liquidation cascades to know that prices move faster than narratives, timelines fill with confident takes, and even experienced traders start reacting to the loudest signal in the room. In those minutes, the core challenge is maintaining a coherent decision process when the environment tries to break it.
Summary
- Volatility exposes attention limits: When markets cascade, traders don’t just need predictions — they need compressed context. AI becomes the “second screen” that restores coherence under stress.
- Usage spikes during chaos, not calm: Data shows AI engagement surges around liquidation events, revealing that traders use it to filter noise and slow emotional reactions.
- Interpretation shapes market structure: As more traders rely on AI for real-time context, the quality of those interpretations can either dampen herding or amplify systemic risk.
That’s why the most meaningful shift I’m seeing is practical. Traders reach for AI during chaos because it compresses information, restores context, and slows emotional reaction time when the market speeds up. Engagement rises broadly over time, and then surges when markets stress-test attention. AI increasingly sits inside the crypto market structure, so those surges carry implications beyond product adoption.
When the screen turns red, attention becomes the bottleneck
During extreme volatility, traders struggle with context collapse. Price action, breaking news, on-chain chatter, funding changes, liquidation data, and social sentiment hit at once. The mental bandwidth required to interpret it all becomes the constraint.
A growing body of research links information overload to degraded decision accuracy under limited attention. A Federal Reserve paper lays out that mechanism and the measurable market effects.
In that environment, many traders gravitate toward tools that turn the flood into something legible. The demand shifts toward fast summaries, context comparisons, and clearer explanations of what has changed.
What tool usage time reveals about trader intent
Since August 2025, MEXC reports that 2.35 million users have used its AI trading suite, generating 10.8 million total interactions. Average daily active users reached about 93,000, with a single-day peak near 157,000; the conversational bot represented the largest share of activity in the suite.
Those totals matter, but the shape of usage matters more. Spikes cluster around stress events, when traders seek a compressed understanding quickly.
When the market accelerates, traders increase their use of AI as a lens for interpretation. That pattern also clarifies what traders mean when they say “AI helps me trade.” In volatile conditions, “help” often means filtering noise, summarizing the moving parts, and restoring situational awareness. The decision remains theirs, and the tool shapes what they can see in time.
AI as stress infrastructure for clarity and restraint
A lot of AI conversation in trading still centers on prediction. In lived market conditions, traders often value something else: coherence.
During volatility, a trader’s biggest risk is often cognitive. Stress narrows attention. Social proof grows louder. Rumor fills the gaps left by speed. Tools that provide fast context can lower the odds of impulsive action driven by panic and narrative momentum.
AI’s real utility shows up at the trader level. It can behave like an editor, distilling what’s known and flagging what’s uncertain — or helping the user anchor on relevant variables while the market tries to drag them into reaction.
That distinction matters because it draws a line between support and substitution. Support tools improve comprehension under stress. Substitution tools encourage delegation of judgment when uncertainty is highest.
Why this matters for market structure
Now zoom out. AI affects markets beyond retail-facing tools. AI adoption in capital markets spans trading and market intermediation, and carries risks tied to opacity, governance challenges, and correlated behavior when many systems respond similarly.
AI-driven trading can contribute to faster markets and higher volatility during stress, especially when strategies converge or react in similar ways to shocks. Crypto magnifies these dynamics. The market runs 24/7. Reflexive sentiment moves quickly. Professional market makers and retail traders often share the same venues and the same velocity of information. In that setting, exchange design and information presentation become part of how markets behave under pressure.
This is why I believe exchanges are increasingly evaluated on a broader definition of quality. Liquidity and fees remain essential, but users also judge the platform’s capacity to keep them oriented when volatility peaks. At scale, orientation becomes stability.
When large numbers of traders use AI tools during volatility to interpret the market in real time, the quality of those interpretations shapes behavior. A clearer context reduces crowding into the same rumors and overreactions. Poor context can accelerate herding, especially when uncertainty is highest.
The next phase of AI in crypto markets is accountability and provenance
If traders use AI primarily for interpretation during stress, the next phase is about accountability. Accountability starts with making it obvious what sources an insight relies on, what is confirmed versus inferred, and what the tool cannot responsibly conclude in real time. Analysts explicitly frame market-wide risks that can emerge from broad AI adoption, especially around correlated behavior and stress dynamics.
It also changes how AI-powered features should be framed. Tools that present themselves as authoritative forecasts can encourage over-delegation at the exact moment when humility and restraint matter most. Tools that emphasize context can encourage deliberation without pretending to eliminate uncertainty.
As AI spreads through trading and market infrastructure, monitoring and governance need to keep pace because systemic risks reveal themselves most sharply during stress.
AI is becoming the translation layer for speed
The industry often talks about AI as a trader. Many users already treat it as a translator. When markets break, traders lean on AI to convert noise into signal, speed into digestible context, and emotional pressure into something closer to restraint. That’s why adoption rises during volatility, and that’s why the stakes are bigger than feature engagement charts suggest.
With more participants relying on similar kinds of real-time interpretation under stress, AI shapes how the crowd understands events. At that point, AI influences behavior at scale, and behavior at scale becomes market structure.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
TLDR:
- Bitcoin’s cycle bottoms have grown shallower each time, falling from -92.7% in 2011 to -68.5% in 2022.
- BTC is currently 47% below its October 2025 ATH of $126K, with Fear and Greed at single digits.
- Green drawdown days near all-time highs are growing faster than red days for the first time in Bitcoin’s history.
- Comparing the 2025 selloff to 2018 may be the wrong framework, as structural data points to a maturing asset.
The latest Bitcoin selloff has renewed fears of a prolonged bear market, but historical drawdown data suggests this cycle may not follow the same path as those before it.
Bitcoin currently trades roughly 47% below its October 2025 all-time high of $126,000. Fear and Greed readings sit at single digits.
Yet 15 years of drawdown data, when mapped against the present, paints a different picture from what many traders are expecting.
Past Cycles Carried Far Deeper and Longer Drawdowns
In 2011, Bitcoin collapsed 92.7% from its peak. Nearly every day of its young existence was spent deep in drawdown territory.
The 2013–2015 cycle followed with a 72% decline, adding over 1,500 days of brutal losses to the historical record.
By 2017, Bitcoin had logged more than 2,500 drawdown days, and red still dominated the distribution chart. The 2018 bear market then pushed losses to 78.4%, reinforcing the same deep correction band between -60% and -80%. Those cycles defined what analyst Sminston With described as “the old Bitcoin.”
The critical pattern across all those cycles, however, is one of gradual improvement. Each successive bottom came in shallower than the one before it.
The sequence runs as follows: -92.7%, -87%, -84%, -77%, and then -68.5% in 2022. That consistent upward shift in the floor is not coincidental.
The current selloff, sitting at approximately -47%, has not yet approached any of those prior cycle bottoms. That alone separates this moment from what traders experienced in 2018 or 2015, even if sentiment feels comparable.
Structural Shifts in How Bitcoin Spends Its Time
After the 2021 bull cycle, a measurable change appeared in the drawdown distribution. Green bars, representing days spent within 0% to -15% of an all-time high, began growing at a faster rate than any prior period. Bitcoin was simply spending more time near its highs than it ever had before.
Sminston With noted that “green-white oscillations are replacing the deep red plunges,” referring to the shift away from the severe, prolonged corrections that once dominated Bitcoin’s history.
The transition zone between -15% and -35% has also grown, with Bitcoin spending close to 90 days there following the October 2025 peak.
This does not mean further downside is impossible. Some market participants are still calling for $40,000 or even $25,000.
However, the data shows that Bitcoin’s worst drawdowns have been getting structurally shallower, cycle after cycle, and the time spent near all-time highs has been growing.
The question the data raises is straightforward. If each cycle bottom has come in less severe than the last, and if Bitcoin is spending more time in the green regime than ever before, then comparing 2025 to 2018 may simply be the wrong framework for this moment.
Aside from ETC, the other notable gainers today include FIL, NEAR, and ARB.
Bitcoin’s price felt some volatility after yesterday’s developments on the tariff front, but ultimately recovered from the dip and now sits around $68,000.
Most larger-cap alts are with minor gains today, while DOT, UNI, and NEAR have emerged as the top performers from this cohort of assets.
BTC Above $68K
The primary cryptocurrency rallied unexpectedly last weekend after it defended the $65,000 support. The bulls initiated a leg up that drove the asset to almost $71,000 for the first time in about a week. However, that was another short-lived attempt, and BTC quickly started to lose value during the business week.
It was stopped once again at $70,000 on Monday, and the next few days brought some more pain. The aulmination took place on Thursday when the bears pushed bitcoin down to $65,600. Its reaction was positive at this point, and it quickly rebounded by three grand.
More volatility ensued on Friday after the US Supreme Court ruled that some of Trump’s tariffs were illegal. The POTUS responded immediately and imposed an additional 10% global tariff on top of the existing ones. BTC dropped by $2,000 in minutes, but recovered just as quickly, and now trades above $68,000 once again.
Its market capitalization has climbed above $1.360 trillion, while its dominance over the alts on CG stands close to 56.5%.
ETC Pumps
ETH, XRP, SOL, and TRX have all posted minor gains of under 1% daily. As a result, Ethereum continues to struggle below $2,000, while XRP is close to $1.45. BCH and HYPE have marked more impressive gains from the larger caps.
Even more impressive price increases come from DOT, UNI, and NEAR, with gains of up to 8% in the case of Near Protocol’s native token. Nevertheless, Ethereum Classic has soared the most today, rocketing by 16% to $9.7. FIL and ARB follow suit.
The total crypto market cap has reclaimed the $2.4 trillion mark on CG and is up to $2.415 trillion as of press time.
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The Netherlands Gambling Authority has moved against prediction markets platform Polymarket, ordering its Dutch affiliate, Adventure One, to stop offering wagering services to residents without a permit.
Key Takeaways:
- Dutch regulators ordered Polymarket’s affiliate to halt operations for offering unlicensed betting to residents.
- Authorities said prediction market wagers are illegal in the Netherlands, even for licensed gambling operators.
- The case reflects wider global regulatory pressure on event-based contracts and prediction platforms.
In a notice released Tuesday, the regulator said the company must “cease its activities immediately” or risk penalties of up to $990,000.
Officials said the platform allowed users in the Netherlands to place bets prohibited under national law, including contracts tied to local elections, and had failed to respond to earlier requests from authorities to address the issue.
Prediction Markets Not Permitted Under Dutch National Gambling Rules
“Prediction markets are on the rise, including in the Netherlands,” said Ella Seijsener, the authority’s director of licensing and supervision.
She added that such operators provide wagers that are not allowed in the Dutch market under any circumstances, even for licensed gambling companies.
Earlier this year, the company’s chief legal officer Neal Kumar said the firm was open to discussions with regulators while US federal courts consider questions over oversight of prediction markets.
The dispute mirrors broader regulatory tension around event-based contracts. In the United States, platforms offering similar products have drawn scrutiny from state authorities, many of which argue the services resemble sports betting.
At the same time, leadership at the Commodity Futures Trading Commission has pushed back against state intervention, asserting federal jurisdiction over prediction market activity.
BREAKING: Dutch financial daily FD reports that @Polymarket has been officially banned in the Netherlands — PredictFolio (@PredictFolio) February 17, 2026
The regulator warns that failure to cease services for Dutch users could result in fines of €420,000–€840,000 per week.https://t.co/gZ7rT04401
The enforcement action also comes as Dutch lawmakers debate tighter rules affecting digital assets.
The country’s House of Representatives recently advanced a proposal introducing a 36% capital gains tax on certain investments, a measure expected to cover cryptocurrencies if enacted.
Should the Senate approve the plan, the tax could take effect as early as 2028.
For now, the regulator’s order places Polymarket’s operations in the Netherlands on hold, highlighting how rapidly growing prediction markets are colliding with national gambling frameworks across multiple jurisdictions.
Dutch Indirect Crypto Investments Hit €1.2B
As reported, Dutch exposure to cryptocurrency through financial securities has grown rapidly over the past five years, reaching about €1.2 billion by October 2025, according to De Nederlandsche Bank (DNB).
The increase largely reflects rising prices of major digital assets rather than a surge of new investor money.
Holdings stood at roughly €81 million at the end of 2020, showing how valuation gains have expanded crypto-linked investments across households, institutions and companies.
Despite the jump, direct ownership of cryptocurrencies remains relatively limited for many investors.
Even with the growth, crypto securities represent only about 0.03% of the Netherlands’ overall investment market, indicating traditional assets still dominate portfolios.
Last year, Dutch crypto firm Amdax raised €30 million ($35 million) to launch Amsterdam Bitcoin Treasury Strategy (AMBTS), a dedicated Bitcoin treasury company that plans to accumulate up to 1% of the total BTC supply, or roughly 210,000 Bitcoin.
The post Dutch Regulator Orders Polymarket to Halt Unlicensed Betting Operations appeared first on Cryptonews.
US spot Bitcoin exchange-traded funds (ETFs) have posted five consecutive weeks of net outflows, with investors pulling roughly $3.8 billion from the products over the period.
During last week, the funds recorded about $315.9 million in net outflows, according to data from SoSoValue. The biggest weekly withdrawal during this 5-week streak occurred in the week ending Jan. 30, when spot Bitcoin (BTC) ETFs recorded about $1.49 billion in net outflows.
The net weekly outflows come as some sessions posted inflows. On Friday, Bitcoin ETFs saw about $88 million in inflows, but they were outweighed by larger redemption days earlier in the week. Notable withdrawals included more than $410 million on Feb. 12, along with additional negative sessions from Feb. 17 through Feb. 19, leaving the weekly total firmly negative.
As of Friday, spot Bitcoin ETFs have accumulated roughly $54.01 billion in net inflows since launch. Total net assets stood near $85.31 billion, representing approximately 6.3% of Bitcoin’s overall market capitalization.
Related: Bitcoin ETFs shed $166M as BTC heads for worst start in years
Institutional de-risking drives Bitcoin ETF outflows
Recent withdrawals from spot Bitcoin ETFs appear tied to institutional positioning rather than a loss of long-term interest in the asset, according to Vincent Liu, chief investment officer at Kronos Research. He said the outflows reflect portfolio de-risking as geopolitical tensions and broader macro uncertainty rise.
Liu added that flows may remain unstable in the near term. Escalating trade disputes and tariff developments have reinforced a risk-off environment across markets, leaving digital assets sensitive to macro headlines.
“Market inflows will be dependent on macro events like incoming Thursday’s initial jobless claims, as weaker data could revive expectations for future rate cuts and help support sentiment currently at 14 extreme fear on the crypto fear and greed index,” he told Cointelegraph.
Related: Bitcoin ETFs still sit on $53B in net inflows despite recent outflows: Bloomberg
Spot Ether ETFs see outflows
Spot Ether (ETH) ETFs have also faced sustained selling pressure, with flows turning negative across the past five weeks as investors trimmed exposure to the second-largest cryptocurrency.
During last week, the funds recorded about $123.4 million in net outflows, according to SoSoValue data. The weekly losses came despite occasional positive sessions. Ether ETFs posted inflows on several days, including about $48.6 million on Feb. 17 and $10.3 million on Feb. 13, but they were outweighed by heavier selling earlier in the week.
Magazine: Bitcoin may take 7 years to upgrade to post-quantum — BIP-360 co-author
TLDR:
- MARA France completed a 64% majority acquisition of Exaion after securing all required regulatory approvals.
- NJJ Capital acquired a 10% stake in MARA France, strengthening the deal’s local French investment structure.
- Fred Thiel and Xavier Niel will both serve on Exaion’s board, representing key stakeholders across the partnership.
- The three-way deal aims to position Exaion as a leading European player in secure cloud and HPC services.
MARA Holdings has completed its acquisition of a 64% majority stake in Exaion, a French high-performance computing firm.
EDF Pulse Ventures, the investment arm of EDF Group, partnered with MARA and NJJ Capital to support this deal.
The transaction, initially agreed upon on August 11, 2025, received all required regulatory approvals before closing. EDF Group continues as both a minority shareholder and a customer of the company.
MARA and EDF Pulse Ventures Formalize a Strategic Alliance
Through this agreement, MARA France completed the acquisition after fulfilling all conditions precedent. The deal marks a notable step for MARA beyond its core Bitcoin mining operations.
Exaion develops and operates high-performance computing data centers based in France. The company also provides secure cloud services and artificial intelligence infrastructure to its clients.
Fred Thiel, Chairman and CEO of MARA, addressed the partnership’s broader purpose at the time of the initial announcement. “Our partnership with Exaion would bring together two global leaders in data center development and digital energy,” Thiel said.
“As data protection and energy efficiency become top priorities for both governments and enterprises, MARA and Exaion’s combined expertise would enable us to deliver secure and scalable cloud solutions built for the future of AI.” His statement laid out the strategic vision that drove the months-long approval process.
As part of the transaction, NJJ Capital acquired a 10% stake in MARA France. NJJ Capital is a holding company closely associated with French billionaire Xavier Niel.
This stake positions NJJ as a key strategic partner alongside MARA in the French market. The arrangement also brought additional regulatory confidence, as France required a local investor to participate before granting its approval.
Exaion’s Board of Directors will reflect the new ownership structure going forward. MARA Inc will appoint three representatives, EDF Pulse Ventures will appoint three, and NJJ will appoint one, with Exaion’s CEO and co-founder also holding a seat.
Xavier Niel and Fred Thiel will both serve on the board. This governance model ensures every major stakeholder has a direct voice in Exaion’s direction.
Exaion Eyes European Leadership in Digital Infrastructure
The core aim of this three-way partnership is to accelerate Exaion’s expansion across Europe. MARA, EDF, and NJJ together plan to strengthen Exaion’s capabilities in HPC and secure cloud services.
The partnership is specifically designed to position Exaion as a European leader in digital infrastructure. This goal has been central to all three partners since the deal was first structured.
Julien Villeret, Head of Innovation at EDF Group, commented on EDF’s role in enabling this transition. “Since its creation in 2020, EDF Pulse Ventures has supported Exaion’s growth and the development of its cutting-edge digital technologies,” Villeret said.
“This transaction would mark a new chapter, as Exaion would join forces with a seasoned global tech partner, while maintaining a collaborative relationship with the EDF Group.” He further described it as a major opportunity for Exaion to accelerate its international development.
The deal also carried strong backing from the French government. France’s Finance Minister Roland Lescure described the deal as a confirmation of the country’s ability to attract international capital without relinquishing control over its strategic assets, noting that the agreement guarantees the protection of national interests and technological sovereignty.
His remarks reflected France’s careful approach to approving the foreign acquisition.
MARA’s move into AI data centers reflects a broader trend among crypto mining companies. Bitcoin miners have been redirecting computational resources toward AI and HPC workloads.
This transition allows companies to diversify revenue beyond cryptocurrency market cycles. The MARA-Exaion deal fits directly within that wider industry pattern, combining energy expertise, digital infrastructure, and computing capacity under one strategic alliance.
TLDR:
- Wintermute CEO Evgeny Gaevoy says crypto is now driven by a “number go up” mindset over cypherpunk values.
- Gaevoy argues stablecoins reinforce U.S. dollar dominance rather than building a truly decentralized financial system.
- Despite Ethereum’s $120B+ in TVL, Gaevoy says most of it is “stuck money” with little real-world application use.
- Gaevoy warns that deeper TradFi integration could permanently erase the original cypherpunk dream of decentralized finance.
Cypherpunk ideals once drove the creation of Bitcoin and decentralized finance. However, Wintermute founder and CEO Evgeny Gaevoy believes the industry has moved far from those origins.
Speaking on Fortune’s Crypto Playbook podcast, Gaevoy argued that crypto has been consumed by a “number go up” mindset.
He also raised concerns about stablecoins reinforcing dollar dominance and the limited real-world adoption of decentralized applications, even as blockchain valuations remain high.
The Shift Away From Decentralization
Gaevoy expressed concern about how the crypto industry has repositioned itself over recent years. Rather than building systems that operate outside traditional finance, many projects now align closely with Wall Street structures.
This shift, he said, runs counter to Bitcoin’s founding philosophy as a libertarian, government-independent currency.
Earlier in February, Gaevoy shared his views in a viral thread on X. He argued that despite pro-blockchain government sentiment and institutional adoption, the core mission of crypto has been overshadowed.
The industry, in his view, is now driven more by price speculation than by meaningful technological purpose.
Stablecoins have become one of the most widely used products in crypto. However, Gaevoy pointed out that their growth comes with a contradiction.
“We were supposed to build something parallel to the dollar,” he said on the podcast, “but now we are actually imposing the dollar on the rest of the world.” That framing challenges the widely held view that stablecoin expansion equals genuine crypto progress.
For Gaevoy, this represents a fundamental conflict in values. The industry set out to create an alternative financial system, but has instead become a channel for extending existing monetary dominance. Rather than replacing the dollar-based order, crypto has largely reinforced it.
Limited Adoption Despite High Valuations
The debate between Ethereum and Solana often dominates crypto conversations. Gaevoy, however, believes this misses a larger issue: neither blockchain has achieved genuine decentralized application adoption.
Despite Ethereum holding over $120 billion in total value locked, according to CoinMarketCap, Gaevoy described much of it plainly. “It’s stuck money,” he said, pushing back against the idea that high TVL figures reflect real economic activity.
Corporate pilots placing bonds or cash markets on blockchains have attracted significant media attention. Yet Gaevoy cautioned against reading too much into them.
“People quite overestimate those pilots by corporations to put some bonds on blockchains or some cash markets on blockchains,” he said. These efforts, he added, remain a tiny fraction of what happens in traditional finance daily.
Wintermute itself works across centralized and decentralized exchanges rather than committing to one direction. This positions the firm to operate at multiple levels of integration with traditional finance.
Still, Gaevoy maintains that the ideal future involves returning to cypherpunk principles rather than a deeper merger with Wall Street.
“Everyone is cheering for this merger with TradFi,” Gaevoy said. “But nobody understands that it will basically just cancel out the cypherpunk dream altogether.”
He remains confident the tide will turn. “My bet is this pendulum will swing back again when people realize there is a benefit to this crazy blockchain stuff, and it’s not just memecoins,” he added.
So far, bitcoin has remained relatively stable after the new tariffs were announced, but history shows pain might be on its way.
On Friday, the US Supreme Court ruled against President Trump’s tariffs, indicating that he could not use a 1977 law – the International Emergency Economic Powers Act (IEEPA) – to levy taxes on imports from almost all countries.
Trump’s reaction was immediate, calling the ruling a disgrace and threatening to take even more actions. He did so hours later, announcing a new 10% temporary tariff on goods from all countries under a law that was never used before, known as Section 122.
It allows him to impose tariffs of up to 15% for 150 days before Congress steps in. However, experts have warned that Trump could once again work around the law, as Section 122 does not expressly prohibit him from allowing the tariffs to lapse after 150 days and then declaring a new emergency to bring them back.
It’s worth noting that the Friday court ruling applies only to tariffs that Trump had enacted under the IEEPA. This allows the President to regulate trade in response to an emergency. Additionally, tariffs imposed under Section 232 of the Trade Expansion Act of 1962 will remain, including those on steel, aluminium, lumber, and automotives.
In its 6-3 ruling on Friday, the Supreme Court failed to address or provide guidance on returning the money to the affected parties that paid the taxes, worth around $130 billion. Treasury Secretary Bessent said after the decision was announced that the refund issue could drag on for years.
For now, perhaps the most important question for crypto investors is whether these latest developments will lead to another crash in the market.
Recall that BTC and the alts plunged in February and April last year when Trump hit essentially every country with tariffs. More corrections took place a few months ago when he only threatened the EU with additional taxation during the Greenland saga.
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So far, bitcoin has remained relatively stable, trading around $68,000. However, it appeared stable after the threats against the EU but plummeted once all financial markets opened on that Monday morning.
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In a strategic move that blends crypto mining with enterprise AI ambitions, MARA Holdings completed a majority stake acquisition in Exaion, the French computing infrastructure operator. The deal, initially agreed in August 2025 with EDF Pulse Ventures, hands MARA France a 64% stake in Exaion after the necessary regulatory clearances. EDF remains a minority shareholder and customer, while NJJ Capital—the investment vehicle of telecom entrepreneur Xavier Niel—will take a 10% stake in MARA France as part of the broader alliance. Governance is being reshaped to reflect the new ownership structure: MARA, EDF Pulse Ventures, and NJJ will each hold board seats alongside Exaion’s CEO and co-founder, with Niel and MARA’s chief executive Fred Thiel also expected to participate on the board. The arrangement crystallizes a multi-party partnership that could accelerate Exaion’s AI and cloud ambitions while reinforcing MARA’s diversification beyond traditional mining operations.
Key takeaways
- MARA Holdings secures a 64% stake in Exaion, a French computing infrastructure operator, after regulatory approvals).
- EDF Pulse Ventures remains a minority shareholder and customer, preserving existing commercial ties with Exaion.
- NJJ Capital will acquire a 10% stake in MARA France, creating a broader alliance with MARA.
- Board composition will reflect the new tri-party ownership, with 3 seats for MARA, 3 for EDF Pulse Ventures, and 1 for NJJ, plus Exaion’s leadership.
- The move aligns with a wider industry trend of Bitcoin miners repurposing facilities for AI data centers to diversify revenue amid hashprice pressure and rising mining costs.
Tickers mentioned: $BTC, MARA
Market context: The deal sits at the intersection of crypto mining, AI infrastructure demand, and large-scale energy deployment. The sector has faced tighter economics since the 2024 halving reduced block rewards and rising network difficulty squeezed margins. In response, several miners have pursued hybrid models—maintaining mining as a cash-flow anchor while building AI computing capacity to stabilize revenue streams. This broader trend is evident in public players adapting their asset bases, with companies like HIVE Digital Technologies reporting strength driven by AI expansion, and others such as CoreWeave moving from crypto mining toward substantial AI infrastructure operations. The industry context underpins MARA’s strategic push into Exaion, emphasizing resilience through diversified endpoints rather than a sole reliance on hash-rate economics.
Bitcoin mining economics have continued to evolve as the hash-rate environment shifts. In the latest cycle, Bitcoin mining difficulty rose about 15% to 144.4 trillion, reversing a prior decline and underscoring the ongoing challenge of maintaining profitability in a volatile cost environment. The rebound in difficulty highlights the need for miners to find steadier revenue streams that can weather fluctuations in price and energy costs. As miners explore data-center-scale AI and high-performance computing services, the balance between pure block rewards and ancillary computing offerings remains a focal point for investors and operators alike.
In the context of this transaction, the governance structure is designed to ensure broad-based representation from MARA, EDF Pulse Ventures, and NJJ while preserving Exaion’s leadership, a balance that could shape how the company evolves as an AI-focused infrastructure provider.
Why it matters
The MARA-Exaion deal signals a concrete step toward a more integrated model of value creation in the crypto ecosystem—one that marries mining with enterprise-scale AI infrastructure. By consolidating Exaion under a majority stake, MARA positions itself to leverage Exaion’s data-center capabilities to offer AI-ready compute at scale, potentially tapping into markets that demand GPU-accelerated processing, machine learning workloads, and cloud-style services tailored for research, development, and production environments. This aligns with a broader industry leitmotif: as hash price becomes an increasingly uncertain driver of earnings, diversified revenue streams anchored in computing infrastructure can provide a stabilizing layer for balance sheets, particularly in a sector prone to volatility in crypto cycles.
The governance implications are non-trivial. The board composition—a representation split among MARA, EDF Pulse Ventures, and NJJ, plus Exaion’s leadership—suggests a framework designed to maintain continuity while enabling cross-pollination of strategic priorities. Xavier Niel’s NJJ Capital involvement and MARA’s continued leadership signal a durable collaboration that could accelerate product development, client acquisition, and international deployment of Exaion’s AI-oriented infrastructure. For investors, the arrangement offers a clearer line of sight into how a crypto-focused mining group can pivot toward high-value computing services while maintaining exposure to digital-asset cycles. For builders in the space, the alliance may foreshadow more multi-party partnerships that blend energy, telecom, and cloud-oriented compute into cohesive platforms for AI workloads and data processing at scale.
From a market perspective, the development occurs amid ongoing demand for AI capacity and cloud infrastructure. Publicly traded miners have increasingly pursued hybrid business models; several have reported that AI-focused data-center initiatives are contributing to revenue growth or serving as a counterweight to mining volatility. The MAVA-Exaion collaboration exemplifies how crypto operators can leverage established energy and data-center assets to participate in AI infrastructure without fully stepping away from mining fundamentals. This approach may influence how other players structure alliances and funding rounds, especially as regulatory and policy considerations around AI compute, data sovereignty, and energy efficiency continue to evolve.
In the long run, the Exaion partnership could shape a more resilient blueprint for how crypto-native firms participate in data-center ecosystems. While the shift toward AI infrastructure is driven by macro-level demand for compute power, it also reflects a broader appetite among investors for differentiated, asset-light growth vectors that are less dependent on volatile crypto price cycles. If executed effectively, the MARA-Exaion alliance could deliver an AI-forward product suite that appeals to enterprises seeking scalable, secure, and energy-conscious computing solutions—an outcome that would diversify both top-line growth and risk exposure for a company historically driven by mining revenues.
What to watch next
- Board governance implementation and any subsequent changes to Exaion’s leadership structure.
- The timing and terms of NJJ Capital’s 10% stake in MARA France and how it influences cross-border collaboration.
- Product roadmaps and enterprise customer wins for Exaion’s AI data-center services, including capacity expansions and new partnerships.
- Regulatory developments affecting AI infrastructure and energy usage across France and Europe that could impact deployment scales.
Sources & verification
- Official MARA Holdings press release detailing the Exaion stake acquisition and ownership structure.
- EDF Pulse Ventures partnership announcements outlining minority participation and customer relationships.
- Public disclosures from NJJ Capital regarding its 10% MARA France stake and strategic intent.
- Exaion governance documents and leadership statements released in connection with the transaction.
Strategic convergence: AI, cloud computing and Bitcoin mining intersect
Bitcoin (CRYPTO: BTC) has emerged as a reference point for miners as they recalibrate portfolios toward AI-forward infrastructure. The combination of a 64% Exaion stake for MARA (NASDAQ: MARA) and a 10% stake for NJJ Capital in MARA France signals a deliberate move to anchor AI data-center capabilities within a crypto ecosystem historically defined by hash power. The arrangement envisages Exaion as a platform for AI and high-performance computing, powered by MARA’s energy assets and regulatory experience, while EDF Pulse Ventures preserves its role as a strategic partner and customer. This alignment not only diversifies revenue streams but also positions the group to bid for larger enterprise workloads that require GPU-accelerated compute at scale, a space where the demand is growing even as crypto prices swing.
Industry dynamics underpinning the transaction extend beyond this deal. A number of mining operators are repurposing facilities to host AI and data-center workloads, a trend underscored by notable moves across the sector. HIVE Digital Technologies has reported strong results strengthened by AI initiatives, while CoreWeave has shifted from crypto mining toward AI infrastructure provision as GPU demand cooled for mining. Other players—TeraWulf, Hut 8, IREN, and MARA among them—are similarly realigning assets to unlock steadier, non-volatile income streams. The logic is straightforward: AI compute centers can offer recurring revenue tied to enterprise demand, while mining remains a cash-flow anchor rather than a sole driver of profitability.
In parallel, the industry continues to monitor mining difficulty and hash-rate dynamics. A rebound in difficulty—rising roughly 15% to 144.4 trillion—reiterates the energy and efficiency challenges miners face, including weather-related outages that periodically disrupt grid reliability. Against that backdrop, the ability to monetize excess energy capacity and repurpose facilities into AI data-center hubs could prove essential for long-term resilience. The MARA-Exaion venture thus sits at a confluence of capital, energy strategy, and enterprise-grade compute services, highlighting how crypto businesses are evolving to weather market cycles while expanding their tech footprint into AI-enabled markets.
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