Institutional investors are bullish on ETH – CoinShares2 min read
A leading digital asset manager says institutional investors are getting more bullish on ETH. That is, after a long period of selling, institutional investors are returning to ETH.
In the latest report called “Digital Asset Fund Flows Weekly”, CoinShares found that the hype around ETH is returning.
According to the company, ETH digital asset investment products are on the rise again. In addition, the data shows that the products had three consecutive weeks of entries, breaking an 11-week series of exits.
“ETH saw inflows for the third straight week totaling $7.6 million,” the company said.
Institutional investors are bullish on ETH – The Merge is the cause?
Also according to the company, the main responsible for this resumption may be the event “The Merge”. This is the update that will make the final transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) mechanism. The Merge is scheduled to take place in August, after several delays.
As CoinShares highlighted, the entries suggest a modest turnaround in sentiment on ETH.
“Ethereum suffered 11 consecutive weeks of outflows, which pushed 2022 outflows to a peak of $460 million,” the report said. “This improvement in sentiment could be due to the arrival of The Merge.”
Meanwhile, institutional investment products in BTC are on the decline. According to the company, BTC-based products suffered a week of outflows, losing $1.7 million.
On the other hand, BTC short products – the instruments that allow investors to sell BTC – become inflows.
“BTC saw small outflows totaling $1.7 million. Meanwhile, BTC short entries totaled $6.3 million last week.” CoinShares.
Finally, the company notes that multi-asset investment products, which invest in various altcoins, are also on the rise. According to CoinShares, they led cryptocurrency products with $2.2 million entries last week.
“Multi-asset investment products had lower inflows totaling $2.2 million. While the broader altcoin market has remained dormant this month so far, with small outflows totaling $0.3 million.”
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