Institutions flock to Ethereum for 7th straight week as merger nears: report

Institutional investors are pouring into Ethereum-based digital asset funds, which have recorded positive inflows for seven straight weeks, according to the latest news CoinShares Report.

Last week, these inflows reached $16.3 million, bringing the total inflows over the past seven weeks to $159 million.

CoinShares research director James Butterfill said on Aug. 8 that the uptick in market sentiment for ethereum-focused products was largely due to “greater clarity” related to upcoming products. merge, Set for September 19, Butterfill states:

“We believe this shift in investor sentiment is due to greater clarity on the timing of Ethereum’s merger from proof-of-work to proof-of-stake.”

This merge Will see the Ethereum mainnet merge with the Ethereum 2.0 beacon chain, which will complete the transition from proof-of-work (POW) to proof-of-stake (POS) consensus mechanisms. The POS consensus mechanism is expected to make Ethereum more secure, energy efficient and environmentally friendly.

This Geerli The Prater testnet merger is also expected to take place this week, which will be the last rehearsal before the mainnet merger in less than six weeks.

Traders are ready to go

Blockchain Analysis Company glass node A hint of the highly anticipated Merge has crypto traders ready to “buy the rumors, sell the news.”

“Derivatives traders are making well-directed bets on ethereum, especially in relation to the planned Sept. 19 merger.”

In an Aug. 8 newsletter titled “Bet on Consolidation,” the analyst firm noted that the combined ETH options and futures markets are in “regression”—the asset’s current price is higher than what the futures market trades in. price.

“Both futures and options markets were in backwardation after September, suggesting that traders expected the merger to be a ‘buy the rumor, sell the news’ style event and have positioned accordingly,” the firm said.

related: Ethereum Options Data Shows Professional Traders Prepare for Long-Term ETH Consolidation

However, the jury is still out on how the merger will ultimately affect the price of Ethereum.in the most recent interview, Ethereum founder Vitalik Buterin remains optimistic about ETH’s long-term prospects, saying that the narrative after the merger is likely to remain positive — as an aspect that has yet to be priced in.

“Once the merger actually happens, I expect morale to go up a lot. I basically don’t expect the merger to be priced in, and I mean not just market terms, but psychological and narrative terms. In terms of narrative, I think it happens when it happens It would not have been priced before.”

The price of Ethereum is $1,77At 6 at the time of writing, it is up 8.6% over the past seven days, according to CoinGecko.