Institutional investors may be hesitant ahead of the Ethereum Merge, with a $61.6 million outflow in ETH-based digital asset investment products indicating doubts about the effectiveness of the upgrade, as reported by Cointelegraph.
According to fund management CoinShares’ weekly report on flows in digital asset funds, the majority of outflows for the week of September 5–11 came from ether-based investment products, marking the market’s fifth straight week of outflows.
James Butterfill, the report’s author, stated that the outflows occurred “despite the greater certainty of the Merge,” suggesting that investors may be worried that the imminent Ethereum Merge on September 15 “may not happen as anticipated.”
Despite the Bellatrix upgrade getting through reasonably undamaged on September 6, the possibility of a successful Merge has increased over the past week, Cointelegraph stated.
According to Ethereum node data aggregator Ethernodes, 84.6% of Ethereum nodes are currently also “Merge ready,” up 15.1% from the 73.5% rate from the previous week.
Butterfill said that CoinShares had previously maintained that since the technical requirements of the hard fork had undergone extensive testing, there were unlikely to be any problems brought on by the Ethereum upgrade.
However, there is still no agreement on whether the Ethereum Merge has been taken into account in the current ETH price of $1,688 and whether the Merge will be a “buy the rumour, sell the news” scenario.
(With insights from Cointelegraph)
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