Last week, ETH investment products saw inflows worth $120 million, marking the largest weekly inflows for the asset since June 2021.
Investors regain hope about Ethereum
Institutional attitude towards Ether it seems to have moved up a geare, digital investment products that offer exposure to Ehtereum have seen four consecutive weeks of inflows, according to CoinShares. Previously, ETH investment products experienced a a long streak of cash outflows of 11 weeks, which saw total year-to-date cash outflows hit $458 million in mid-June.
According to data from the latest edition of the weekly report “Digital Asset Fund Flow” from CoinShares, Ether investment products recorded inflows totaling $8.1 million between July 18 and July 22, adding to the previous week when a large inflow of $120 million was recorded.
The $120 million figure represents the largest weekly inflow for ETH products since June 2021, with CoinShares suggesting that “Investor confidence is slowly recovering” as the long-awaited Ethereum merger draws closer.
As it stands, the annual flow for investment products is ETH reduced to $315 million in issuancescompared to $458 million in June.
Still feeling positive about Bitcoin
Data from CoinShares also reveals that investment products offering exposure to Bitcoin saw the highest inflows last week at $19 million, adding to the previous week in which BTC funds generated entries of significant value. of $206 million.
Notably, while institutional investors were cautious about ETH for most of 2022, this opinion on BTC is still quite positive for the most part – except for a few obstacles – with generated BTC products $241.3 million in admissions since the beginning of the year.
In a report, Singapore-based asset manager IDEG argued that the general attitude of crypto investors is now starting to change from neutral to bullishand expect the Ethereum Merge to be a key driver of the market’s recovery.
Although there have been minor delays and difficulties in the transition from PoW to PoS for Ethereum, the merger is now scheduled for September 22nd – giving the market a positive catalyst to take advantage of in the report.
the merge should be a A major benchmark for Ethereumbecause it will significantly improve the network sustainability and energy efficiency. This major upgrade however, it may not reduce gas costs and layer 2 should perform this function for the network in the near future according to some market observers such as MacKenzie Sigalos.
* A few quick points to clarify:
-L2s, not the merger, will take care of lowering gas prices
-Merge is a change in consensus mechanism, not an expansion of network capacity
-Solutions to gas charges, speed & scalability are coming from rollup and clipping https://t.co/nCH9WQ3IAY— MacKenzie Sigalos (@KenzieSigalos) July 25, 2022
the merge definitely the most scrutinized crypto event of the year and there is a risk that it will have a significant impact on the end of the year. For the time being Ethereum continues to test the transition to proof-of-stake on its various test networks. Everything is progressing as expected and allows the entire crypto market to be optimistic about the rest of the year for Ethereum.
This more positive sentiment has been spreading since the reversal in the market started a few days ago. Another indicator showing a return of confidence, the fear and greed index is now only a 26 in the fear category and it went down to 7 at the height of the market crisis. Last month we were still at 14which shows great fear.
Source: https://alternative.me/crypto/fear-and-greed-index/
Time will tell if we see a resumption of the uptrend or just a rebound before going back down. Still, some hope, measured, has returned to the market.
To learn more about market conditions, find our latest article here.
