Ethereum-based digital asset funds have recorded seven consecutive weeks of positive inflows, according to CoinShares’ weekly fund flows report, as institutional investors get behind the upcoming Merge.
Inflows hit US$16.3mln last week, adding to a total of US$159mln over the previous seven weeks.
“We believe this turn-around in investor sentiment is due to greater clarity on the timing of the Merge where Ethereum shifts from proof-of-work to proof-of-stake,” James Butterfill, CoinShares’ head of research, commented.
‘The Merge’, which is scheduled for 19 September and will see Ethereum fundamentally change its underlying infrastructure, is expected to make the second most popular crypto more environmentally friendly, energy-efficient and secure.
The coin has jumped 10% in the last week and 60% in the previous month to more than US$1,850 as it finally earned some respite after a torrid first half of 2022.
Ethereum plummeted over 80% to roughly US$900 in June from its all-time high of over US$4,800 in November 2021.
Blockchain analytics firm Glassnode said the current price of the digital currency is higher than prices trading in the futures market.
“Both futures and options markets are in backwardation after September, suggesting traders are expecting the Merge to be a ’buy the rumour, sell the news’ style event and have positioned accordingly,” Glassnode added.
Although Ethereum founder Vitalik Buterin seemed to have contrasting beliefs.
“Once the merge actually happens, then I expect morale is going to go way up,” he said, inferring that the future for Bitcoin’s biggest rival will be rosy post-merge.