Institutional Investors Uncertain About Ethereum’s Success
Ethereum-based investment products have shown $62 million in outflows during the crucial week leading up to The Merge, indicating that some investors expressed concerns about the update’s success.
According to CoinShares’ weekly report, digital asset investment products saw outflows totaling $63 million over the past week, $61.6 million of which came from Ethereum products.
James Butterfill, the author of the report and Head of Research at CoinShares, said the outflows ahead of the event underscore concerns amongst investors that “the event might not go as planned.” Investors express uncertainty about the success of the upcoming event, despite assurances from Ethereum developers that the network is fully prepared for The Merge.
The developers also claim that block missing issues experienced before the mainnet switched to PoS won’t affect Ethereum’s functionality after The Merge. It’s worth noting that according to Ethernodes, as of 11:00 (GMT+3), September 13, 84.6% of Ethereum nodes are fully ready for the transition, and only about 15% haven’t upgraded to the required version.
Ethereum’s successes on the path to consensus algorithm change have attracted the attention of institutional investors over the past few months. For example, Ethereum’s AUM numbers rose by 2.36% in August alone. Moreover, many experts argue that Ethereum is the easiest and safest choice for investors.
However, despite the declining interest in Ethereum-based products, the large derivatives market Chicago Mercantile Exchange Group is still set to launch options trading on its ETH futures products just after The Merge.