The greatest weekly inflows for ETH since June 2021 were recorded for the week ending on July 15 and totaled $120 million.
According to CoinShares, there have been inflows into digital investment products that give exposure to Ether (ETH) for four weeks running. This suggests that institutional opinion about the asset has changed for the better.
Before then, ETH investment products had been experiencing a protracted 11-week losing streak, with the year-to-date (YTD) outflows reaching a peak of $458 million in mid-June.
Data from the most recent edition of CoinShares’ weekly “Digital Asset Fund Flows” report shows that Ether investment products had inflows of $8.1 million between July 18 and July 22, increasing the $120 million inflows from the previous week.
The $120 million amount represents the highest weekly inflows for ETH products
since June 2021, and CoinShares believes that as Ethereum’s long-awaited Merge nears completion, “investor confidence is steadily rebounding.”
Currently, the YTD flows for ETH investment products have been reduced to outflows totaling $315 million, down from $458 million in June.
According to CoinShares statistics, investment products with exposure to Bitcoin (BTC) saw the highest inflows last week, totaling $19 million. This is in addition to the previous week, when BTC funds produced a sizable inflow of $206 million.
Notably, institutional investors have been wary about ETH for the most of 2022, but have generally been more optimistic about bitcoin (BTC) despite a few roadblocks, with BTC products garnering $241.3 million in inflows so far this year.
In a research, Singapore-based asset management IDEG said that Ethereum’s Merge will be a crucial factor in the market recovery and that overall investor opinion in cryptocurrencies is already starting to shift from neutral to optimistic.
“While there has been delays and minor setbacks in the PoW to PoS migration for Ethereum, the Merge is now projected for Sep ‘22 – this is giving the market a clear ‘positive upside catalyst’ to run with,” the report reads.
The Merge will dramatically increase the network’s sustainability and energy efficiency, making it a positive milestone for Ethereum. However, the significant improvement won’t lower gas prices, and layer 2s are anticipated to fulfill this role for the network for the foreseeable future.