Institutional traders are piling into Ether-based digital asset funds, which have recorded seven straight weeks of optimistic inflows, in accordance to the newest CoinShares report.
Said inflows reached $16.3 million final week, including to a complete of $159 million in inflows over the past seven weeks.
CoinShares Head of Research James Butterfill on Aug. 8 stated the rise in market sentiment for Ethereum-focused merchandise is essentially due to “greater clarity” relating to the upcoming Merge, which is about for Sep. 19, with Butterfill stating:
“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.”
The Merge will see the Ethereum Mainnet merge with the Ethereum 2.0 Beacon Chain, which can full the transition from proof-of-work (POW) to a proof-of-stake (POS) consensus mechanism. The POS consensus mechanism is anticipated to make Ethereum safer, vitality environment friendly, and environmentally pleasant.
The Goerli and Prater testnet merge can also be anticipated to happen this week, which would be the final scheduled gown rehearsal earlier than the mainnet Merge takes place in lower than six weeks’ time.
Traders gearing up
Blockchain analytics agency Glassnode steered that the highly-anticipated Merge has crypto merchants gearing up to “buy the rumor, and sell the news.”
“Derivatives traders are placing directionally obvious bets for Ethereum, specifically relating to the upcoming Merge planned on 19 September.”
In a e-newsletter titled “Betting on the Merge” on Aug. 8, the analytics agency famous that post-Merge, the ETH choices, and futures market is positioned in (*7*) — a scenario through which the present worth of an asset is increased than the costs buying and selling within the futures market.
“Both futures and options markets are in backwardation after September, suggesting traders are expecting the Merge to be a ‘buy the rumor, sell the news’ style event, and have positioned accordingly,” said the firm.
Related: Ethereum options data show pro traders ready to go long into ETH’s Merge
However, the jury is still out as to how the Merge will ultimately affect Ethereum’s price. In a recent interview, Ethereum founder Vitalik Buterin remained optimistic about ETH’s long-term prospects saying that the narrative will likely remain positive post-Merge — as aspect that hasn’t yet been priced in.
“Once the merge actually happens then I expect morale is going to go way up. I basically expect that the merge is going to be not priced in, by which I mean not even just market terms, but even psychological and narrative terms. In narrative terms, I think it’s not going to be priced in pretty much until after it happens.”
The worth of Ethereum is $1,776 on the time of writing, up 8.6% over the past seven days, in accordance to information from CoinGecko.