US regulatory crackdown results in $32 million in digital asset outflows

The regulatory crackdown in the United States may have given institutional investors the chills, as digital asset investment products experienced the biggest weekly outflow of 2023.

The largest outflow of the year, $32 million, was recorded in the last week for digital asset investment products, according to a report by institutional crypto fund manager CoinShares on February 20.

The move comes as the Securities and Exchange Commission intensifies what market analysts have dubbed its “war on crypto,” which has targeted everything from staking services to stablecoins to crypto custody.

Midway through last week, outflows totaled $62 million; however, they began to decline by the week’s end as sentiment increased, according to CoinShares analyst James Butterfill.

78% of those outflows, or them, came from investments related to bitcoin, and $3.7 million came in to Bitcoin short funds. The company cited the regulatory crackdown as the cause of the increased outflows.