In the wake of the much-anticipated Ethereum ETF launches, Wall Street appears to be grappling with how to effectively communicate their value to potential investors.

According to a new report by 10x Research, BlackRock has resorted to describing ETH as "a bet on blockchain technology." However, this characterization may not be resonating with traditional investors.

"Wall Street people usually don't place bets on things they don't understand,” the report notes.

This uncertainty comes the day after the ETFs saw a total net outflow of $133 million on July 24. Grayscale Ethereum Trust (ETHE) had a net outflow of $327 million, but that was offset by the firm’s Mini Ethereum ETF seeing an inflow of $46 million and Fidelity taking in $74 million.

That means on day three of trading, the total net asset value of U.S. Ethereum spot ETFs is $9.5 billion, according to data from SoSo Value.

The lack of a clear, compelling narrative for ETH stands in stark contrast to Bitcoin's widely accepted "digital gold" positioning, 10x Research notes, adding that it remains bearish on ETH.

"Ethereum might be the weakest link, where fundamentals (new users, revenues, etc.) have been stagnant or lower," the analysts write.

The research firm also points out the absence of major marketing campaigns from Ethereum ETF issuers, noting, "Isn't it bizarre that Vitalik is not on Bloomberg or CNBC explaining what Ethereum is? Does he even care? Have you ever seen this during an IPO when the company is not running some form of awareness?"

It's worth mentioning that Vitalik Buterin, one of the Ethereum co-founders, has been a reluctant figurehead. In a January blog post, he wrote about passing the torch to other up-and-coming leaders in the Ethereum community. And he's pointedly avoided answering questions about the Ethereum ETFs, even when asked at public events.

But besides that, 10x Research argues that Ethereum's use case has diminished in the current market cycle.

"This cycle is more about meme coin issuance on Solana, and this is why Solana has been outperforming, as users need to buy SOL—but not ETH," the report states.

The firm also raises concerns about ETH's technical indicators, pointing out that the stochastics indicator suggests the cryptocurrency may be overbought.

The stochastics indicator is a momentum oscillator that compares a security's closing price to its price range over a specific period, typically used to identify potential overbought or oversold conditions.

"With a current reading of 87% (from 92%), Ethereum appears on its way to a lower level," the report warns.

10x Research maintains its bearish stance on ETH, advising investors to "buy Bitcoin when bullish and short Ethereum when bearish."

The firm suggests that given recent market conditions and potential headwinds, "it might make sense to press the Ethereum short a bit longer."

Edited by Stacy Elliott.