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 the Ethereum 2.0 update will benefit the ecosystem, but the uncertainty surrounding 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.
OKEx also notes institutional interest in exchange-traded products around ETH. For example, last December, 3iQ launched The Ether Fund on the Toronto Stock Exchange. Later, there were analogues from CoinShares and Galaxy Digital. Asset manager Evolve Funds canceled the 0.75% commission for his ETH fund altogether until the end of May.
Ethereum at the heart of the rally
However, the diversity of funds does not correlate with institutional investments in the Ethereum ecosystem. According to OKEx, the decline in the inflow of institutional money is associated with the renewal of the highs of the ETH price. Recall that on the morning of May 4, ETH in the ETH / USDT pair set a new high at $ 3527 (Binance).
In the meantime, the average transfer fee on the Ethereum blockchain network dropped to January levels. According to blockchain journalist Colin Wu, lower fees could be the result of software innovations or user churn on Binance Smart Chain (BSC).
The price of ETH in the ETH / USDT trading pair at the time of writing is $ 3230 (OKEx).
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