Institutions flocking to Ethereum for 7 straight weeks as Merge nears: Report
"Greater clarity" around the Merge has driven institutional inflows into Ethereum products, according to a CoinShares report.
Institutional investors are piling into Ether-based digital asset funds, which have recorded seven straight weeks of positive inflows, according to the latest CoinShares report.
Said inflows reached $16.3 million last week, adding to a total of $159 million in inflows over the last seven weeks.
The Merge will see the Ethereum Mainnet merge with the Ethereum 2.0 Beacon Chain, which will complete the transition from proof-of-work (POW) to a proof-of-stake (POS) consensus mechanism. The POS consensus mechanism is expected to make Ethereum more secure, energy efficient, and environmentally friendly.
The Goerli and Prater testnet merge is also expected to take place this week, which will be the last scheduled dress rehearsal before the mainnet Merge takes place in less than six weeks’ time.
Traders gearing up
Blockchain analytics firm Glassnode suggested that the highly-anticipated Merge has crypto traders gearing up to “buy the rumor, and sell the news.”
In a newsletter titled “Betting on the Merge” on Aug. 8, the analytics firm noted that post-Merge, the ETH options, and futures market is positioned in “backwardation” — a situation in which the current price of an asset is higher than the 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 rumor, sell the news' style event, and have positioned accordingly," said the firm.