Institutional investors have been actively investing in exchange-traded funds based on the cryptocurrency Ethereum (ETH) for the seventh week in a row.
According to a report from CoinShares, ETH-based derivatives raised $16.3 million in capital from August 1-5, while the amount of money invested in these financial instruments increased by $159 million over the past seven weeks.
Bitcoin funds, on the other hand, lost $8.5 million between August 1 and 5.
We believe investor interest in Ethereum is driven by clarity on the release of The Merge update, which will see the blockchain switch from PoW to PoS consensus algorithm,” said James Butterfill, head of research at CoinShares.
As a reminder, The Merge is scheduled for release on September 19. Ethereum creator Vitalik Buterin is optimistic about the blockchain’s long-term prospects. He believes that the network update will boost the morale of the cryptocurrency community, and the positive narrative around ETH will persist.