The host of the popular InvestAnswers YouTube channel, a widely-folllowed cryptocurrency analyst, has said that institutional investors could soon start betting on the second-largest cryptocurrency by market capitalization, Ethereum ($ETH).
In a video in which the anonymous host of InvestAnswers responded to users’ questions, he explained to his over 440,000 subscribers why he is holding the second-largest cryptocurrency, and why he believes a “lot of institutional money” could soon flow towards it. Per his words, staking yields are expected to rise to the point ETH staking could be seen as an attractive alternative to bonds.
The host of InvestAnswers added:
It is an enticing bond alternative for institutional investors. For the first time ever, we could get a lot of institutional money, people that historically invest in things like gold and bonds could come into the space and this will be a huge money flow.
Ethereum’s staking yield is expected to rise after the Merge upgrade. The upgrade describes the Ethereum network’s current mainnet merging with the Beacon Chain’s Proof-of-Stake (PoS) system, setting the stage for future scaling upgrades, including sharding. The move is expected to reduce Ethereum’s energy consumption by 99.95%.
The move will effectively force miners who have invested heavily in equipment to mine other networks. Several exchanges have expressed interest in listing the ETHPOW token, while others have already listed IOUs of those tokens.
The widely-followed analyst, as Daily Hodl reports, also noted that Ethereum’s dominance in decentralized finance (DeFi) and its future as an environmentally-friendly cryptoasset also play in its favor as there will be no ESG-related concerns.
Moreover, the analyst referenced U.S. Securities and Exchange Commission Chair Gary Gensler saying that Ethereum and Bitcoin would “be certainly commodities,” which would effectively mean regulatory risks are also low.
As CryptoGlobe reported, even Google engineers have been showing respect for the upcoming Ethereum Merge, with a doodle counting down to the event. The upgrade is expected to occur in less than 24 hours.
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