Institutions flocking to Ethereum for 7 straight days as Merge gets near: Report

Institutional investors are piling into Ether-based digital asset funds, that have recorded seven straight days of positive inflows, based on the latest CoinShares report. 

Stated inflows arrived at $16.3 million a week ago, contributing to as many as $159 million in inflows during the last seven days.

CoinShares Mind of Research James Butterfill on August. 8 stated the increase in market sentiment for Ethereum-focused products is basically because of “greater clarity” concerning the approaching Merge, that is looking for Sep. 19, with Butterfill stating: 

“We believe this turn-around in investor sentiment is a result of greater clearness around the timing from the Merge where Ethereum shifts from proof-of-try to proof-of-stake.”

The Merge might find the Ethereum Mainnet merge using the Ethereum 2. Beacon Chain, that will complete the transition from proof-of-work (Bang) to some proof-of-stake (POS) consensus mechanism. The POS consensus mechanism is anticipated to create Ethereum safer, energy-efficient, and eco-friendly.

The Goerli and Prater testnet merge can also be likely to occur now, which is the final scheduled dress wedding rehearsal prior to the mainnet Merge happens in under six weeks’ time.

Traders preparing

Blockchain analytics firm Glassnode recommended the highly-anticipated Merge has crypto traders preparing to “buy the rumor, then sell this news.”

“Derivatives traders are placing directionally apparent bets for Ethereum, particularly concerning the approaching Merge planned on 19 September.”

Inside a e-newsletter entitled “Betting around the Merge” on August. 8, the analytics firm noted that publish-Merge, the ETH options, and futures marketplace is situated in “backwardation” — a scenario where the current cost of the asset is greater compared to prices buying and selling within the futures market.

“Both futures and options financial markets are in backwardation after September, suggesting traders expect the Merge to become a ‘buy the rumor, sell the news’ style event, and also have positioned accordingly,” stated the firm.

Related: Ethereum options data show pro traders all set to go lengthy into ETH’s Merge

However, the jury continues to be out regarding the way the Merge may ultimately affect Ethereum’s cost. Inside a recent interview, Ethereum founder Vitalik Buterin continued to be positive about ETH’s lengthy-term prospects stating that the narrative will probably remain positive publish-Merge — as aspect that has not yet been priced in. 

“Once the merge really happens i then expect morale will go in place. I essentially expect the merge will probably be not priced in, through which I am talking about not really just market terms, but mental and narrative terms. In narrative terms, I believe it’s not really priced in virtually until after it takes place.”

The cost of Ethereum is $1,776 during the time of writing, up 8.6% during the last 7 days, based on data from CoinGecko. 

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