A new report from 10X Research reveals that Wall Street is facing challenges in effectively communicating Ethereum’s value to potential investors.
A new report from 10X Research reveals that Wall Street is facing challenges in effectively communicating Ethereum’s value to potential investors, following the highly anticipated launch of Ethereum spot ETFs. BlackRock has attempted to market Ethereum (ETH) as "a bet on blockchain technology." However, this framing seems to fall short with traditional investors.
"Wall Street professionals typically avoid betting on things they don't fully understand," the report notes. This uncertainty is evident in the market's response, as Ethereum ETFs experienced a total net outflow of $133 million on July 24. The Grayscale Ethereum Trust (ETHE) alone saw a net outflow of $327 million. However, this was partially offset by inflows into Grayscale's Mini Ethereum ETF, which attracted $46 million, and Fidelity's Ethereum ETF, which brought in $74 million.
Despite Ethereum's status as the second-largest cryptocurrency by market cap, its price has not reflected the enthusiasm surrounding the new ETFs. Ethereum has dropped 8.2% over the past week since the ETFs began trading, leading investors to question when, or if, the price will start to rise due to increased demand from these funds.
The report from 10x Research highlights the lack of a compelling narrative for Ethereum, contrasting it with Bitcoin's well-known "digital gold" reputation. The research firm remains bearish on Ethereum, citing stagnant or declining fundamentals such as new users and revenues.
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