Institutional investments in Ethereum products have increased due to “more clarity” surrounding the Merge, according to CoinShares research.
According to the most recent CoinShares report, institutional investors are pouring money into digital asset funds based on Ether (ETH), which have seen positive inflows for seven consecutive weeks.
Last week, said inflows were $16.3 million, bringing the sum for the previous seven weeks to $159 million.
The Ethereum mainnet and Ethereum 2.0 Beacon Chain will merge during The Merge, completing the switch from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. Ethereum is anticipated to become more secure, energy-efficient, and environmentally friendly because of the PoS consensus method.
Ethereum-based Products On An Upward Slope:
This week’s Goerli and Prater relevant keywords merge also anticipated; it will serve as the final practice run before the mainnet Merge, which will happen in less than six weeks.
The analytics company said that following the Merge, both ETH options and the futures market is in “backwardation,” which occurs when the present value of an asset is greater than the price trading in the futures market. This was stated in a newsletter titled “Betting on the Merge,,” published on Monday.
The impact of the Merge on Ether’s price is still up in the air. Vitalik Buterin, the creator of Ethereum, expressed his continued optimism for ETH’s long-term prospects in a recent interview, predicting that the narrative will probably remain favorable after the Merge.
James Butterfill, the head of CoinShare, said that the sentiment for these Ethereum-based products in the market was mostly because of better clarity and was related to the Merge coming up for the altcoin. He said that they at CoinShare believe that the sentiment of the traders is due to better clarity on the Merge timing.