The "improved certainty of the Merge" is not leading to increased inflows
Although the "improved certainty of the Merge" should theoretically lead to increased inflows, CoinShares' head of research James Butterfill has observed the opposite occurring.
Institutional investors may be concerned about the success of the Ethereum Merge, with digital asset investment products seeing an outflow of $61.6 million of Ether (ETH). This signals a lack of confidence in the upgrade, which could lead to further sell-offs and price drops in the near future.
Ethereum-based investment products have been seeing outflows for the past five weeks, according to data from CoinShares. This trend is likely to continue as more investors seek to cash out of their ETH holdings and into other assets. This could put pressure on the Ethereum price in the short-term, but the long-term prospects for the asset remain strong.
The outflows of capital from Ethereum in the lead up to the Merge event scheduled for September 15th could highlight a concern amongst investors that the event might not go as planned. James Butterfill, the author of the report, said that the outflows have come "despite the improved certainty of the Merge," which could suggest that investors are still worried about potential problems with the event.
The successful Merge of the Bellatrix upgrade is good news for the company, as it is likely to improve their bottom line. The upgrade went through relatively unscathed on Sept. 6, which bodes well for the future.
The proportion of Ethereum nodes that are "Merge ready" has increased to 84.6%, according to data from Ethernodes. This is up from last week's 73.5% "Merge ready" rate. This suggests that more nodes are prepared to implement the proposed changes to the Ethereum network.
I believe that the Ethereum upgrade will go smoothly, based on the CoinShares team's strong technical specifications and testing. This hard fork is necessary to maintain Ethereum's position as a leading smart contract platform, and I believe that it will help the platform continue to grow and scale.
The Ethereum Merge is still a bit of a mystery, and it's hard to say whether or not it has been factored into the current ETH price. It's possible that the Merge could be a "buy the rumor, sell the news" event, but until more information is known, it's tough to say for sure.
It is our view that the Ethereum Merge has been priced into ETH because the Merge itself is public knowledge. While we cannot speak for every market participant, we believe that the information about the Merge is widely known and has been factored into the current price of ETH.
If it's public knowledge, it's already priced in.— Mudit Gupta (@Mudit__Gupta) September 7, 2022
If it's not public knowledge, it's insider trading.
Don't get rekt trying to gamble
In the opinion of "punk4936" - a crypto researcher on Twitter - the current price of ETH does not reflect the significant reductions in ETH issuance (99%) and increases in energy efficiency (99.9%) that will result from the Merge.
Ethereum is about to get a 99% cut in issuance and a 99.9% cut in energy usage, the merge is not priced in— 4936 (@punk4936) September 7, 2022
The Ethereum network is scheduled to undergo a major change on September 15th, when the consensus mechanism will transition from proof-of-work (PoW) to proof-of-stake (PoS). This change could have major implications for the network and its users, so it is important to be aware of what is happening and how it could affect you.