Rough Sea for ETH Futures? – Within a few hours now, the two networks Ethereum (ETH) currently existing in parallel will merge into oneduring the process called The Merge. Even if this great evolution is going well from a technical point of view, it creates violent eddies in financial derivatives based on ethers, in particular on futures contracts (future).
Institutions worried about the smooth running of The Merge
This is stirring loudly among crypto investorsEthereum. The inevitable approach of his transition – a consensus based on the proof of work (PoW) to that based on Proof of Stake (PoS) – worries even the very seasoned institutional investors.
In any case, this is what emerges from a recent analysis of CoinShares, specialist in crypto investments with institutional funds. In this publication published on September 12, 2022, James Butterfillhead of research for CoinShares, finds that wealthy investors are showing up lately very cautious in their ether investments.
Indeed, according to James Butterfill, the net flows – between investment inflows and outflows on ETH-based financial products – would be negatives for the fifth consecutive week. A feeling of worry which would therefore be linked to The Mergewhich should normally occur on September 15, 2022.
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$62 million urgently withdrawn from ETH funds
If the crypto market still does not seem to be in very good shape as a whole, it is especially investments in ether that are experiencing significant withdrawals of funds. As can be seen in the table below, if Bitcoin (BTC) is also experiencing a negative net flow of -13 million dollars over the last week, this input/output ratio is -$62.7 million for ETH.
What is interesting is that this concern of institutional investors does not have the same intensity following the regions of the world. It is in particular at Canada that the pre-Merge panic seems more intense there, followed by United States. Conversely, in Europe, the net flow is almost in balance between inflows and outflows of institutional money.
In any case, concerns that The Merge might “not going as planned”, as James Butterfill says, seem sufficient to remove some speculative bets. For better buy back ethers afterwardsif the merger goes well, and take advantage of the staking ?
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