Institutional sentiment towards Ether (ETH) appears to have shifted into a positive gear as digital investment products offering exposure to the asset have posted four consecutive weeks of inflows.according to CoinShares.
Previously, ETH investment products were on an 11-week long run of outflows that saw the year-to-date (YTD) total hit $458 million in mid-June.
According to data from the latest edition of CoinShares’ “Digital Asset Fund Flows” weekly report, Ether investment products saw inflows totaling $8.1 million between July 18 and July 22, adding to the previous week of significantly higher inflows of $120 million.
The $120 million figure marks the largest weekly inflows for ETH products since June 2021, and CoinShares suggests that “investor confidence is slowly recovering” as the long-awaited Ethereum Meltdown nears completion.
Nowadays, YTD flows for ETH investment products are down to $315 million outflows, compared to $458 million in June.
Other assets
CoinShares data also reveals that investment products offering exposure to bitcoin (BTC) saw the largest inflows last week of $19 million, adding to the previous week, in which BTC funds generated inflows of $206 million.
In particular, although institutional investors have been cautious on ETH for most of 2022, this view on BTC has remained relatively positive for the most part – barring a few bumps in the road – as BTC products that have generated $241.3 million worth of inflows to date.
In a report shared with Cointelegraph, the asset manager Singapore-based IDEG argued that overall crypto investor sentiment is starting to turn from neutral to bullish, and expects the Ethereum Meltdown to be a key driver of the market recovery..
While there have been delays and minor hiccups in the migration from PoW to PoS for Ethereum, the merger is now projected for September 2022, giving the market a clear “positive catalyst to the upside,”” says the report.
The merger is expected to be a bullish milestone for Ethereum as it significantly improves the sustainability and energy efficiency of the network. However, the big upgrade will not reduce gas rates, and Layer 2 is expected to fill this role for the network in the near future.
*Few quick points to clarify:
-L2s, not the merge, will take care of lowering gas prices
-Merge is a change of consensus mechanism, not an expansion of network capacity
-Solutions to gas fees, speed & scalability are coming from rollups and sharding https://t.co/nCH9WQ3IAY— MacKenzie Sigalos (@KenzieSigalos) July 25, 2022
Some quick points to clarify:
-The L2, and not the merger, will be responsible for reducing gas prices.
-The merger is a change in the consensus mechanism, not an expansion of the network’s capacity
-Solutions to gas prices, speed and scalability come from rollups and fragmentation. https://t.co/nCH9WQ3IAY
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