With digital asset investment products experiencing the largest weekly outflow of 2023, institutional investors may have become uneasy about cryptocurrencies in the wake of the regulatory crackdown in the United States.

The institutional crypto fund manager CoinShares revealed on February 20 that the biggest outflow of the year occurred in the last week, when investments in digital assets totaled $32 million.

The outflow follows a massive crackdown on the digital asset industry in the United States, which has targeted everything from staking services to stablecoins to crypto custody as the Securities and Exchange Commission ramps up what industry analysts have dubbed its crypto war.

Outflows peaked at $62 million in the middle of last week, but slowed by the end as sentiment improved, according to CoinShares analyst James Butterfill.

The majority of those outflows, or 78%, came from Bitcoin-related investment products, while Bitcoin short funds received $3.7 million. The firm blamed the increased outflows on the regulatory crackdown.