Institutions flocking to Ethereum for 7 straight weeks as Merge nears: Report
Traders take up the strategy of buying the rumour and selling the news as the much anticipated Ethereum Merge is coming closer
According to recent research, Ethereum saw $16 million in inflows and is on a nearly 7-week streak of inflows totalling $159 million. This indicates that institutional investors are pouring money into digital asset funds based on Ether (ETH). James Butterfill, the head of the research, suggested the increase in market sentiment for Ethereum-focused products is largely due to 'greater clarity' regarding the upcoming Merge. He said,
"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."
After months of delays, the much-anticipated Merge is set to take place on September 19 this year. With this upgrade, the Ethereum mainnet will merge with the Ethereum 2.0 Beacon Chain, completing the transition from a Proof-of-Work (PoW) to a Proof-of-Stake consensus mechanism (PoS). The goal of this upgrade is to eliminate the energy-intensive mining process while also securing the Ethereum network with staked ETH. Following the Merge, the Ethereum network is expected to handle more than 100,000 transactions per second. Furthermore, this upgrade is expected to make Ethereum 99 per cent more environmentally friendly.