Whats the Next Move as Ethereum Slows Down and Uncertainty in ETF Persists

CoinDesk reports:
Over the past two weeks, investors have withdrawn $120 million from investment products focused on ETH. The launch schedule for Ethereum spot ETFs has been postponed after the Securities and Exchange Commission (SEC) requested issuers to resubmit amended S-1 filings.
On July 2nd, Ethereum (ETH) traded around $3,448, showing little change in the past few hours but aligning with the prevailing optimism of July.
Simultaneously, Ethereum bulls target new highs above $3,450, betting on the upward potential driven by speculation surrounding Ethereum spot ETFs.
These new products are expected to launch later this month in the United States, potentially aiding ETH/USDT in breaking the resistance at $3,630, which was rejected on June 17.
On July 1st, bullish speculators incurred slight losses after Ethereum failed to sustain momentum above $3,520.
ETH attempted to break out of a descending channel on the 4-hour timeframe overnight but failed to consolidate this trend as of press time.
Notably, the recent gain to $3,500 isn’t a clear victory for bulls if Ethereum fails to break through the resistance zone of $3,520 to $3,550.
Institutional Ethereum Absorption
CoinShares observed a $60.7 million outflow from Ethereum investment products in last week’s digital asset flow report.
This marks the most significant 7-day negative flow in nearly two years, totaling $119 million over two weeks.
The report further emphasizes Ethereum as the poorest-performing crypto asset of 2024 based on net flows, with month-to-date (MTD) and year-to-date (YTD) flows at $37 million and $25 million, respectively.
U.S. Ethereum Spot ETFs
Following the Securities and Exchange Commission’s (SEC) approval of 19b-4 applications for eight potential issuers on May 23, U.S. Ethereum spot ETFs have neared completion this summer.
However, these ETF products await approval for launch, pending the approval of S-1 registration statements.
The latest setback in the approval process has seen the SEC exclude issuers’ S-1 forms. Last week, the commission reviewed the forms and requested them to be resubmitted with its comments by July 8th.
As a result, the launch of Ethereum spot ETFs is delayed until mid-July or late July.
Market Expectations
Last week, Bernstein analysts Gautam Chhugani and Mahika Sapra forecasted slightly lower demand for Ethereum spot ETFs post-launch compared to Bitcoin (BTC) ETFs, citing overlapping demand sources.
The co-authors also noted a deterrent in the approved Ethereum spot ETFs’ lack of ETH staking functionality, potentially dampening interest in these products.
Since its debut earlier this year, Bitcoin ETFs have attracted $55 billion in funds to date.
Despite a decrease in inflows from February peaks, analysts predict this figure to exceed $100 billion by the end of 2025.
In contrast, JPMorgan forecasts net inflows into Ethereum spot ETFs could reach approximately $3 billion by year-end ($6 billion if staking is permitted).
JPMorgan also anticipates a slightly negative immediate market reaction, as investors might profit-take, having purchased Grayscale Ethereum Trust (ETHE) in anticipation of converting to ETFs.
Additionally, last week, Bitwise Chief Information Officer Matt Hougan predicted Ethereum spot ETFs could attract net inflows of $15 billion in the first dozen months.