Home CryptocurrencyAltcoin Connecting “nerves” leads to an outflow of ether-based investment products

Connecting “nerves” leads to an outflow of ether-based investment products

by SuperiorInvest

Institutional investors may falter ahead of the Ethereum merger, with digital asset investment products seeing an outflow of $61.6 million in Ether (ETH), which signals concern about the success of the upgrade.

In its digital assets, the fund flows weekly messagefund manager CoinShares reported that ether-based investment products accounted for most of the total outflows in the week of September 5-11 – leading to the market’s fifth straight week of outflows.

The report’s author, James Butterfill, said the outflows came “despite increased certainty of the merger,” which could highlight investor concerns that “the event may not go according to plan,” referring to the upcoming Ethereum merger set for September 15.

Despite the likelihood of a successful merger improving over the past week, p The Bellatrix upgrade came through relatively unscathed on September 6th.

84.6% of Ethereum nodes are also now “merge ready,” according to Ethereum node data aggregator Ethernodes, up 15.1% from last week’s “ready to merge” rate of 73.5%..

Butterfill also noted that CoinShares has previously he argued that no issues are likely to arise from the Ethereum upgrade as the technical specifications of the hard fork have been rigorously tested.

Related: Institutional ETH sentiment is positive after 11 weeks of outflows

Meanwhile, there is currently still no consensus on whether the Ethereum merger has been factored into the price of ETH, which is currently at $1,688, and whether the merger will be a “buy the rumor, sell the news” event.

Polygon’s director of security Mudit Gupta is of the opinion that the Ethereum merger was counted in ETH because the merger itself is “public knowledge”.

On the other hand, a crypto researcher who goes by the name “punk4936” on Twitter believes that the 99% reduction in ETH emissions and 99.9% increase in energy efficiency after the merger is not reflected in the current ETH price.

Ethereum Merge will witness the transition of the network’s consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS), scheduled to take effect on September 15 at approximately 3:20 UTC time, according to Blocknative. .

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