According to the CoinShares fund manager’s weekly report on capital flows, there is a significant improvement for ether-based products. The manager noted that there were positive inflows for ether-based products for three consecutive weeks. As a result, Ether funds accumulated about $ 7.6 million in institutional investments. In contrast, there were many outflows of up to $1.7 million in Bitcoin.
In an attempt to explain the possible reason for the inflows into Ether funds, CoinShares referred to the expectation of the “merge”. It was mentioned that there were outflows for the asset funds for eleven weeks within the year 2022. Total outflows for the year have increased to $ 460 million. So the sudden change in mood is a positive step forward for the cryptocurrency Ethereum.
Currently, the total institutional inflows amount to $ 14.6 million. However, about $6.3 million comes from short Bitcoin funds, which suggests that many investors have less confidence in the world’s leading cryptocurrency. In addition, US funds and exchanges recorded inflows of about $8.2 million, with short positions accounting for 76%. This is the same percentage as in the week ending July 8.
The sentimental appreciation of ether by institutional investors does not seem to be reflected in its spot price. Today’s chart shows that ETH is at $1,082. The value also corresponds to a price decrease of 28% compared to last month.
There is an ongoing debate on Twitter as to whether or not Ether should be categorized as a security. Some Bitcoin maximalists support Michael Saylor, the CEO of MicroStrategy, who calls ETH a security.