Institutional Investors Positive About ETH As Merge Is Near
On Wednesday, there was a decline in the pricing of Ethereum. However, there are indications that professional investors are coming back as the much awaited Merge nears.
Popular fund provider, CoinShares revealed that Ether-based products received capital inflow again. This is the third week in a row that Ethereum has recorded high inflows.
According to CoinShares, institutional Ether funds had an inflow of $7.6 million. However, Bitcoin funds saw a loss of $1.7 million in outflows.
“These inflows reflect a minor recovery in sentiment. This is after ETH had eleven straight weeks of outflows that took 2022 outflows to a height of $460M,” added CoinShares.
Furthermore, CoinShares said the shift in attitude could be due to the closeness of the Merge. The Merge is an ETH upgrade that switches the cryptocurrency’s consensus algorithm from PoW (proof-of-work) to PoS (proof-of-stake).
ETH’s Price Yet To Increase Despite Interest From Institutional investors
ETH is preparing for one more test run, the Goerli testnet. Afterward, the community expects the actual Merge to take place before October.
Meanwhile, in late June, Bitcoin-based funds witnessed record withdrawals of over $423 million. The same week, Ethereum investors began putting money back into Ether-based funds.
Although there was a total inflow of $14.6 million then, short BTC funds accounted for $6.3 million. This indicates that investors were pessimistic about the flagship cryptocurrency.
On July 8th, US exchanges recorded $8.2 million worth of inflows. 76% of the inflows consisted mainly of short positions.
However, the spot value of Ethereum has not increased despite interest from institutional investors. As per CoinGecko, ETH is now down by 2.9% over the last 24 hours at $1,047.
Is Ethereum A Security?
Besides, crypto tribalism has once again reared its ugly head on Twitter. Earlier this week, crypto lovers debated if Ether should be classified as a commodity or security.
Maximalists in the BTC community agreed with Michael Saylor on his last week’s comments about ETH. Saylor had stated that ETH was a security since it is chargeable.
However, Ethereum supporters, including co-founder Vitalik Buterin have rejected the notion. Buterin argued that Ethereum was a commodity like Bitcoin and not a security.
On July 7th, Cointelegraph reported the completion of Ethereum’s second-to-last merge trial on the Sepolia network. Soon, the final merge test on the Goerli network will take place before the Ether mainnet merge.
Anthony Sassano, an educator of Ethereum, verified on Twitter the success of the Sepolia Merge. Despite the hiccups, the Ethereum community is optimistic about the final Merge.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
