Ethereum News Today: Ethereum's Open Interest Surges 56% as GENIUS Act Boosts Institutional Interest

Ethereum's perpetual open interest surged by $10 billion in a single week, following the enactment of the GENIUS Act. This significant increase reflects a growing interest from institutional investors who are now closely monitoring Ethereum, along with other stablecoin-linked blockchains such as Solana. The shift in focus is evident as ETH-based exchange-traded funds (ETFs) recorded two consecutive days of inflows, outpacing Bitcoin ETFs during the same period.

Ethereum’s perpetual open interest jumped from under $18 billion to over $28 billion within a week. This surge occurred after the GENIUS Act was signed into law, which established clearer regulations for issuing stablecoins. The new rules have attracted the attention of institutional investors, leading several corporate treasury firms to build up their holdings of Ethereum and other Layer 1 blockchains that support stablecoins. Networks such as Solana, Ripple, and Cardano also saw increased interest as companies began stockpiling these assets, similar to how some have held Bitcoin in the past.

The market developments, coupled with the new law, have brought Ethereum into the spotlight for many institutions, indicating a shift in focus from Bitcoin to Ethereum and other blockchains that back stablecoins. Ethereum ETFs received more investment inflows than Bitcoin ETFs for two days in a row, suggesting that investors anticipate regulators to approve staked spot ETH ETFs soon. BlackRock’s recent preparations for potential approval and their plans to offer staking yields on the iShares Ethereum Trust product further support this idea.

Activity in Ethereum’s options market also suggests that traders expect prices to rise. There was strong demand for call options, particularly those with later expiration dates this year. For example, ETH call spreads for September and December with strike prices in the $3,400 to $4,500 range indicate that investors are betting on higher Ethereum prices in the final months of the year. Options data shows more interest in buying calls than puts, which generally signals a positive outlook. Meanwhile, Bitcoin’s share of the crypto market dropped from 64% to 60%, while Ethereum’s share increased from 9.7% to 11.6%, showing some money is moving from Bitcoin into Ethereum.

In another development, Dynamix, a publicly traded company, announced plans to merge with another firm to form a new startup called Ether Machine. This new company intends to hold over 400,000 ETH, worth about $1.5 billion, making it the largest known ETH treasury company. Ethereum’s price rose around 21% last week, outperforming Bitcoin. Some market watchers predict it could reach a new high of $4,000. However, there is a resistance area between $3,600 and $3,900 that has held for nearly three years. Breaking through this zone would be crucial for further gains. As of the latest update, the ETH price was trading at $3,760.98, down 0.24% over the last 24 hours.

Signs also point to the start of a new altcoin season, with indexes tracking altcoin performance rising above 50, the highest since last December. The rise in Ethereum inflows and market share supports this idea. Whether these trends continue will be seen in the coming weeks. The combination of new regulations, increased institutional interest, and market shifts suggests that Ethereum could remain strong. Many investors will be watching closely to see what happens next.