Institutional investor sentiment towards ETH turns positive after 11 straight weeks of outflows

Institutional sentiment on ethereum appears to have turned positive, with digital investment products offering exposure to the asset seeing inflows for four straight weeks, according to data from CoinShares.

Prior to this, ETH investment products had experienced 11 consecutive weeks of outflows, with total outflows so far this year reaching as high as $458 million in mid-June.

According to the data of the latest CoinShares "Digital Asset Fund Flow" weekly report, during the period from July 18 to July 22, the total inflow of funds into Ethereum investment products was 8.1 million US dollars. An additional sum was added on the basis.

The $120 million figure marks the largest weekly inflow into ETH products since June 2021, with CoinShares indicating that "investor confidence is slowly returning" as Ethereum's long-awaited merger nears completion.

So far, year-to-date, outflows from ETH investment products have shrunk to $315 million, compared to $458 million in June.

other assets

Coinshares data also shows that last week, investment products offering exposure to Bitcoin had the largest inflows at $19 million, compared with $206 million inflows to BTC funds the previous week.

It’s worth noting that while institutional investors remain cautious on ETH for most of 2022, sentiment towards BTC remains relatively positive for most of the time – save for a massive outflow in late June – early in the year To date, BTC products have generated $241.3 million worth of inflows.

Fund Flows by Asset: CoinShares

In a report shared with Cointelegraph, Singapore-based asset manager IDEG believes that broader cryptocurrency investor sentiment is now starting to shift from neutral to bullish, and expects the merger of Ethereum to be a key driver of market recovery.

“While there have been delays and minor setbacks in ethereum’s migration from PoW to PoS, the merger is expected to take place on September 22 — providing a clear ‘positive upside catalyst’ for the market,” the report said.

The merger is expected to be a bullish milestone for ethereum, as it will significantly improve the sustainability and energy efficiency of the network. However, this major upgrade will not reduce gas fees, which Layer 2 is expected to provide to the network for the foreseeable future.

*A couple of quick clarifications:

- L2 will be in charge of lowering gas prices instead of merging

- Merging is a change in the consensus mechanism, not an expansion of network capacity

-The solution to gas cost, speed and scalability comes from rollup and sharding https://t.co/nCH9WQ3IAY

— MacKenzie Sigalos (@KenzieSigalos) July 25, 2022