Institutional sentiment towards Ether (ETH) appears to have shifted into a positive gear, with digital investment products offering exposure to the asset seeing four straight weeks of inflows, according to CoinShares.
Prior to this, ETH investment products had been on an 11-week long outflow streak that saw total year-to-date (YTD) outflows reach $458 million in mid-June.
According to data from the latest edition of CoinShares’ weekly “Digital Asset Fund Flows” report, Ether investment products saw inflows totaling $8.1 million between July 18 and July 22, which adds to the previous week of significantly larger inflows of $120 million.
The $120 million figure marks the largest weekly inflows for ETH commodities since June 2021, with CoinShares suggesting “investor confidence is slowly recovering” as the long-awaited Ethereum merger nears completion.
As it stands, YTD flows for ETH investment products are down to $315 million in outflows, compared to $458 million in June.
Data from CoinShares also reveals that investment products offering exposure to Bitcoin (BTC) saw the largest inflows last week at $19 million, adding to the previous week in which BTC funds generated inflows per value of 206 million dollars.
Notably, while 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 along the way, with BTC products generating $241.3 million. in inflows to date.
Flows per asset: CoinShares
Related: The Merge Is Ethereum’s Chance To Take Over Bitcoin, Says Researcher
In a report shared with Cointelegraph, Singapore-based asset manager IDEG argued that broader crypto investor sentiment is now starting to turn from neutral to bullish, and expects the Ethereum meltdown to be a key driver for the market recovery.
“While there have been minor delays and hiccups in the migration from PoW to PoS for Ethereum, the merger is now projected for September 22nd, which is giving the market a clear ‘positive bullish catalyst’ to run,” reads in 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 major upgrade will not reduce gas rates and Layer 2s are expected to serve this role for the network for the foreseeable future.
*A few quick points to clarify:
-L2s, not fusion, will drive down gas prices
-The merger is a change of consensus mechanism, not an expansion of network capacity
-Solutions to gas fees, speed and scalability come from stacking and fragmentation https://t.co/nCH9WQ3IAY
— MacKenzie Sigalos (@KenzieSigalos) July 25, 2022
This post ETH Institutional Sentiment Turns Positive After 11 Weeks of Outflows
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