Institutions Flock to Ethereum for 7 Straight Weeks as Merge Approaches: Report

Institutions Flock to Ethereum for 7 Straight Weeks as Merge Approaches: Report

Greater clarity around the Merge has led to an institutional influx into Ethereum products, according to a report from CoinShares. According to observations, they have been investing in them for seven weeks in a row.

According to the latest report from CoinShares, institutional investors are investing in Ether-based digital asset funds, which have shown positive inflows for seven consecutive weeks, according to Cointelegraph. This inflow reached $16.3 million last week, adding to a total of $159 million in inflows over the last seven weeks.

CoinShares Head of Research James Butterfill on Monday said the rise in market sentiment for Ethereum-focused products is largely due to “greater clarity” relating to the upcoming The Merge, which is set for September 19:
“We believe this turn-around in investor sentiment is due to greater clarity on the timing of The Merge where Ethereum shifts from proof-of-work to proof-of-stake.”

The Merge will lead to an Ethereum mainnet merge with the Ethereum 2.0 Beacon Chain, which will complete the transition from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. The PoS consensus mechanism is expected to make Ethereum more secure, energy efficient, and environmentally friendly. The testnet merge between Goerli and Prater is scheduled to take place this week, which will be the last scheduled dress rehearsal before the mainnet Merge in less than six weeks.

Blockchain analytics firm Glassnode suggested that the highly-anticipated Merge has crypto traders gearing up to “buy the rumor, and sell the news.”

“Derivatives traders are placing directionally obvious bets for Ethereum, specifically relating to the upcoming Merge planned on 19 September.

“Both futures and options markets are in backwardation after September, suggesting traders are expecting the Merge to be a ’buy the rumor, sell the news’ style event, and have positioned accordingly.”

© 2022, Eva Fox | Tesmanian. All rights reserved.


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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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