Investors are likely to be anxious about data encryption after a crackdown by US regulators, with a larger weekly outflow of digital asset investment products in 2023.

On February 20th, CoinShares, an organization's data encryption fund operator, reported that digital asset investment products totaled $32 million last week, setting aside a larger operating scale for this year.

Capital outflows came after the United States launched a massive crackdown on digital assets, as the Securities and Exchange Commission (Securities And Exchange Commission) intensified what market analysts called a war on login passwords, targeting everything from chip services to smooth login passwords to login password escrow.

James Butterfield, an investment analyst at CoinShares, filled in that capital outflows from the Central District reached $62 million last week, but the rate of capital outflows slowed down as market sentiment improved.

Most of these flows (78 per cent) came from BTC (BTC)-related investment products, with $3.7 million injected into BTC bearish funds. The company attributed the increase in capital outflows to a crackdown by regulators.

"for us, it is mainly because ETP investors are less optimistic about the recent regulatory work pressure in the United States than the stock market."

However, the negative sentiment of investors is not reflected in the stock market, which is up 10% during this period. Butterfield indicated that this would push the total assets of product operations to $30 million, the highest since August.

ETH and mixed property funds also saw capital outflows, but blockchain technology stocks and trends put the cart before the horse, with inflows totaling $9.6 million this week.

The organization has gradually put money back into the data encryption fund since January, with inflows totaling $117 million in the last week of this month, the highest in six months.

However, after four weeks of inflows in January, there have been outflows from the fund in the past two weeks.

The regulatory enforcement actions that led to this change of mindset include a complaint filed by the Securities and Exchange Commission against Kraken's chip services program on Feb. 9. A few days later, SEC sued Paxos to make Binance dollars, and last week it proposed changes to login password companies that operate as fund custodians.