By Gabriel Joyce
Wall Street stays away from bets on Ethereum, 10X Research attributes to inadequate understanding.
10X Research reports that Wall Street struggles to convey value to would-be investors in the advent of the unveiling of the Ethereum ETF.
The new report by 10X Research reveals that BlackRock describes ETH as the bet on blockchain technology. Nevertheless, the characterization by the world’s largest asset manager fails to resonate with traditional investors.
10X Research notes that the Wall Street community often avoids placing bets on things they comprehend less. The uncertainty comes after the ETFs suffered a change of fortune, with total net outflow hitting $133 million on July 24.
Grayscale Ethereum Trust (ETHE) suffered a $327 million net outflow. The scale proved sizable for offsetting the $46 million inflow in Mini Ethereum ETF. Fidelity saw a $74 million inflow. This implies that three-day trading led to a net asset value of $9.5 billion for the newly approved Ethereum spot ETFs, as shown by Soso Value data.
Buterin Portrays Reluctant Figure Head in ETH ETF
The absence of a clear and compelling narrative for the Ether (ETH) starkly contrasts Bitcoin’s “digital gold” positioning. 10x Research notes that such absence makes it difficult to convey the narrative, with the analysts remaining bearish on ETH.
10X Research analysts consider Ethereum as the weakest link to the ETFs. In particular, the fundamentals involving news users and revenues are either lower or stagnant.
The research firm decries the missing major marketing campaigns from the issuers of Ethereum ETF. The analysts point to the bizarre incident with Ethereum co-founder Vitalik Buterin, who has yet to appear on Bloomberg or CNBC to explain Ethereum. The absence shows little care and is unseen during the IPO, with the company not running awareness.
The 10X Research report mentions that as Ethereum co-founder, Buterin cuts a reluctant figurehead. Previously, in the January blog post, Buterin revealed passing the torch to upcoming leaders in the Ethereum community. When appearing at public events, the developer pointedly avoids questions regarding the Ethereum ETFs.
10X Research indicates that Ethereum’s use case is diminishing within the present market cycle. The report discloses that the current cycle appears dominant for meme coin issuance on the Solana network. This explains the solid performance of Solana, as users must purchase SOL and not ETH.
10X Research questions the ETH’s technical indicators, particularly the stochastics indicator, which shows that the crypto is likely overbought. Such involves a momentum oscillator comparing the closing price to the price range over a defined period. Doing so helps identify potential oversold and overbought conditions.
The report decries that the present 87% reading, down from 92%, shows Ethereum is destined for the lower level. The 10X Research sustains a bearish stance on ETH, directing investors to purchase the bullish Bitcoin and simultaneously short Ethereum.
Ethereum Spot ETFs Suffer $341.35 Million Outflow
The firm’s analyst suggests that the recent market conditions and likely headwinds support the ground to press Ethereum for a short position a bit longer.
Meanwhile, the US ETH spot ETF saw a daily total net inflow of $162.67 million as of July 26, per SoSoValue data. Such was an increment from a $152.3 million decline on Thursday to raise the cumulative total net inflow to $341.35 million. The total value added for the spot ETFs is $933.86 million, with total assets at $9.24 billion, representing 2.36% of the Ethereum market cap.
SoSoValue data shows that Grayscale’s ETHE has seen a $1.51 billion net outflow, leaving a total net assets of $7.11 billion. BlackRock’s ETHA is the largest gainer with a cumulative net flow of $442.1 million ahead of Bitwise ETHW $265.5 million and Fidelity’s FETH $219.35 million.
The market data chart shows that ETH is experiencing modest change and exchanging hands at $3,295.93, translating to $396 billion per SoSoValue data.
