Can Ethereum 2.0 encourage $350 million worth of institutional investment

June is important for the crypto market for two reasons. Firstly, it marks the end of the second quarter, and secondly, the merge will also arrive at the end of June. The much-anticipated event is expected to be a turning point for Ethereum [ETH] And perhaps even for those investing in tokens.

This is ETH. is up and up for

Probably not, but the transition to Proof-of-Stake (PoS) will certainly help Ethereum recover from its recent losses. In addition to what ETH saw during the May 9 crash, the king of altcoins has been on a downtrend since dropping by around 7.6%.

Ethereum Price Action , Source: TradingView – AMBCrypto

But, losses are not limited to price action only. Investor behavior has also been a contributing factor.

Ethereum has been the worst-performing asset according to institutional inflows, registering year-on-year outflows of $357 million. For the week ending June 3, Ethereum once again noted institutions withdrawing up to $32 million from assets.

coinshare netflow report , Source: CoinShares

This is despite the fact that total net inflows led by bitcoin have been over $100 million. Part of the reason behind these frequent outflows is the delay Ethereum experiences related to the above merge.

However, now that Ethereum is on the verge of becoming cheaper, faster and more affordable, institutions are also expected to invest significantly in the asset. It can also help with the recovery of outflow.

Institutions’ investments can act as a morale booster for long-term holders who have been tied for more than a month now.

According to Ethereum Vibrance, investors are sticking to the idea of ​​accumulation from December 2021 onwards, regardless of the price drop. But since April, they have been largely liquidating their positions.

Ethereum Livelihoods , Source: Glassnode – AMBCrypto

This is also attested by the noted sales bouts at their end, which have on several occasions destroyed 650 million days.

ethereum coin days destroyed , Source: Glassnode – AMBCrypto

It is imperative that LTH refrain from selling their holdings as ETH holders control approximately 69% of the supply between six months and seven years.

The conglomerate, which bought its stake about a year or two ago, is most dominated by a 28% supply. Should they start selling, Ethereum could be in trouble.

Ethereum Supply Distribution by Time , Source: Glassnode – AMBCrypto

Thus, going forward, ETH 2.0 is expected to bring about changes to hold LTH and encourage institutions to invest in Ethereum.