- Valkyrie investment is to move out $ 1 billion from Ethereum to other networks as a precautionary step
- McClurg says that the transition to Proof-of-stake isn’t a good move in the short run though it could be in the long run.
- He also stated that Ethereum should prove safe post-Merge for investors.
The chief investment officer of Valkyrie Investments, Steve McClurg said that Valkyrie is to draw $1 billion from Ethereum (ETH) as The Merge approaches.
Speaking on the topic, McClurg said:
Right now Bitcoin is really the flight to safety for a lot of our funds…some of the more established proof-of-stake (PoS) protocols are also a great place to be. Places like Avalanche and Zilliqa.
McClurg said that they were moving out of anything that has too much exposure to ETH right now until they see this Merge sometime in the middle of September and into some of the safer larger crypto protocols.
Speaking to an interviewer, McClurg said that Valkyrie is to shift its funds from Ethereum to other smart contract blockchains like Avalanche and Zilliqa as a precautionary step to keep its assets.
“Some of the more established proof-of-stake protocols are a great place to be, places like @avalancheavax and @zilliqa,” Valkyrie CIO @stevenmcclurg shares with @BloombergTV
Full interview in thread 👇
— Valkyrie (@ValkyrieFunds) August 25, 2022
While the blockchain and the crypto community are of varying beliefs about The Merge, McClurg belonged to the school of thoughts that believed transition isn’t a great move in the short run, although it may be in the long run. He thinks that the Merge could pose major risks to investors.
McClurg said that Ethereum is more secure with proof-of-work. He laid claims to his beliefs by taking into account how Bitcoin became the most secure network by validating transactions with computers all over the world for a long time. He saw the security of the network at peril when validating fell into a few hands with proof-of-stake.
Representing Valkyrie, McClurg added that, as a company holding a large portfolio, it is reluctant to enter the uncharted territory of Ethereum-(Pos). It has opted to keep out of the place, till it is tried and tested, and proven safe.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
