For the week ending July 15, ETH investment products posted $120
million worth of inflows, marking the largest weekly inflows for the
asset since June 2021.
Institutional sentiment towards Ether (ETH)
appears to have shifted into positive gear, with digital investment
products offering exposure to the asset having posted four consecutive
weeks of inflows, according to CoinShares.
Prior to this, ETH investment products had been on a lengthy 11-week run of outflows that saw the total year-to-date (YTD) outflows hit as high as $458 million in mid-June.
According to data
from the latest edition of CoinShares’ weekly “Digital Asset Fund
Flows” report, Ether investment products posted inflows totaling $8.1
million between July 18 and July 22, adding to the previous week of
significantly major inflows of $120 million.
The $120 million
figure marks the biggest weekly inflows for ETH products since June
2021, with CoinShares suggesting that “investor confidence is slowly
recovering” as Ethereum’s long awaited Merge comes closer to completion.
As
it stands, the YTD flows for ETH investment products has been chipped
down to $315 million worth of outflows, compared to $458 million in
June.
Other assets
Coinshares data also reveal that
investment products offering exposure to Bitcoin (BTC) saw the largest
inflows last week at $19 million, adding to the week before in which BTC
funds generated a hefty $206 million worth of inflows.
Notably,
while institutional investors have been cautious with ETH for most of
2022, this view on BTC has remained relatively positive for the most
part — barring a few bumps in the road — with BTC products generating $241.3 million worth of inflows YTD.
Related: The Merge is Ethereum’s chance to take over Bitcoin, researcher says
In
a report shared with Cointelegraph, Singapore-based an asset manager
IDEG argued that the broader crypto investor sentiment is now beginning
to transition from neutral to bullish, and expects Ethereum’s Merge to
be a key driver of the market recovery.
“While there has been
delays and minor setbacks in the PoW to PoS migration for Ethereum, the
Merge is now projected for Sep ‘22 – this is giving the market a clear
‘positive upside catalyst’ to run with,” the report reads.
The
Merge is expected to be a bullish landmark for Ethereum due to it
significantly improving the network’s sustainability and energy
efficiency. The major upgrade will not reduce gas fees, however, and
Layer 2s are expected to serve this function for the network in the
foreseeable future.
*Few quick points to clarify:
— MacKenzie Sigalos (@KenzieSigalos) July 25, 202
-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
source link : https://cointelegraph.com/news/institutional-eth-sentiment-turns-positive-after-11-weeks-of-outflows
