Huge institutional money could flow into Ethereum (ETH) after merger, crypto analyst says – here’s why
A widely followed cryptoanalyst says institutional interest in Ethereum (ETH) could grow after the second-largest digital asset by market cap transition to a proof-of-stake consensus mechanism.
While explaining why he holds Ethereum, the anonymous host of InvestAnswers tells his 444,000 YouTube subscribers that the second-largest crypto-asset by market capitalization is expected to return between 10% and 15% for annual stakers.
According to the analyst, ETH’s yield can be a tempting alternative to bonds for investors with deep pockets.
“It is an attractive bond option for institutional investors. For the first time ever we could get a lot of institutional money, people who historically invest in things like gold and bonds can come into the space and this will be a huge influx of money.”
The InvestAnswers host also says that Ethereum’s dominance in decentralized finance (DeFi), the low regulatory risk it has and the fact that the proof-of-stake consensus mechanism is environmentally friendly are other reasons why he has the second largest crypto asset by market cap.
“Ethereum also powers DeFi, and there is also no regulatory risk as we heard from Gary Gensler [U.S. Securities and Exchange Commission Chair] for the fifteenth time last week.
There is also no ESG [Environmental, Social and Governance] R&D [Fear, Uncertainty and Doubt] because moving to proof of stake will not burn energy.
And finally, the reduced ETH issuance and increased burns will systematically supply Ethereum.”
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Featured image: Shutterstock/Titima Ongkantong/monkographic
