The interest of institutional investors in Ethereum is limited due to the transition of the network to the new version of Ethereum 2.0, according to OKEx
The Ethereum 2.0 update is holding back the influx of institutional investors. At least, this is the opinion of OKEx Academy.
The report says that the Ethereum 2.0 update will benefit the ecosystem, but the uncertainty associated with the transition is holding back investment from major players. The long transition to version 2.0 opens up opportunities for other blockchains focused on smart contracts, OKEx said.
Join our telegram channel to keep up to date with the main trends of the crypto market.
OKEx also notes the interest of institutions in exchange-traded products around ETH. For example, in December last year, 3iQ launched The Ether Fund, an exchange-traded ETH fund on the Toronto Stock Exchange. Later, there were analogues from CoinShares and Galaxy Digital. Asset manager Evolve Funds has canceled the 0.75% commission for its ETH fund until the end of May.
Ethereum at the heart of the Rally
However, the diversity of funds does not correlate with the investment in the Ethereum ecosystem by institutions. According to OKEx, the decline in the inflow of institutional money is associated with the update of the highs of the ETH price. Recall that in the morning, on May 4, ETH in the ETH/USDT pair set a new high at $3456 (BitMEX).
See also: ETH On-Chain Analysis: Ethereum Throughput at Highs
Meanwhile, the average commission for the transfer in the Ethereum blockchain network fell to January figures. According to blockchain journalist Colin Wu, the reduction in fees may be the result of innovations at the software level or the outflow of users on the Binance Smart Chain (BSC). Read about what to fear for traders of the ether cryptocurrency in the near future in the special material BeInCrypto.
The price of ETH in the ETH/USDT trading pair at the time of writing is $3372 (OKEx).
What do you think? Share your thoughts with us in the comments and join the discussion in our Telegram channel.
All information contained on our website is published in good faith and objectively, and for informational purposes only. The reader is solely responsible for any actions taken on the basis of the information received on our website.