Institutional sentiment towards Ether (ETH) appears to have shifted into high gear, with digital investment products offering exposure to the asset seeing four consecutive weeks of inflows, according to CoinShares.
According 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, adding to the previous week of significant 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 Ethereum’s long-awaited Merger nears completion.
As it stands, YTD flows for ETH investment products have been reduced to $315 million in outflows from $458 million in June.
Data from CoinShares also reveals that investment products offering exposure to Bitcoin (BTC) recorded the largest inflows last week with $19 million, adding to the previous week in which BTC funds generated large inflows of $206 million.
Notably, while institutional investors have been cautious with ETH for most of 2022, this view of BTC has remained relatively positive for the most part – except for a few bumps in the road — with BTC products generating $241.3 million in inflows year-to-date.
In a report shared with Cointelegraph, Singapore-based asset manager IDEG argued that broader crypto investor sentiment is now starting to shift from neutral to bullish, and expects the merger of Ethereum is a key driver of the market recovery.
“While there have been minor delays and setbacks in the PoW to PoS migration for Ethereum, the merger is now scheduled for September 22 – this gives the market a clear ‘positive catalyst’ to operate with,” the report states. .
The meltdown should be a bullish benchmark for Ethereum because it significantly improves the sustainability and energy efficiency of the network. However, the major upgrade will not reduce gas charges and Layer 2s are expected to perform this function for the network for the foreseeable future.
*A few quick points to clarify:
-L2s, not the merger, will take care of lowering gas prices
– The merger is a change in consensus mechanism, not an expansion of network capacity
-Solutions to gas costs, speed and scalability come from rollups and sharing https://t.co/nCH9WQ3IAY
— MacKenzie Sigalos (@KenzieSigalos) July 25, 2022