Recent changes in US legislation, like the adoption of the GENIUS Act, have led to a significant increase in open interest in Ethereum. Institutional investors are paying attention, and trade volumes in ETFs and options markets are also rising.
Impact of GENIUS Act on Ethereum
Following the signing of the GENIUS Act, Ethereum's open interest surged from under $18 billion to over $28 billion in just one week. This was driven by new, clearer regulations regarding stablecoin issuance, which caught the attention of institutional investors. Corporate treasuries started to accumulate Ethereum and other Layer 1 blockchains that support stablecoins, such as Solana and Ripple.
Optimism in Ethereum Options Market
Activity in Ethereum's options market also signals growing optimism. For instance, there is strong demand for call options with later expiration dates, particularly for September and December, with strike prices ranging from $3,400 to $4,500. This suggests that investors are betting on rising Ethereum prices in the final months of the year. Additionally, Ethereum's market share increased from 9.7% to 11.6%.
New Company Plans for ETH Holdings
Dynamix announced a merger with another firm to create a new startup called Ether Machine, planning to hold over 400,000 ETH worth about $1.5 billion. This would make Ether Machine the largest known ETH treasury company, overtaking SharpLink Gaming.
The recent measures, such as the GENIUS Act and the growing interest from institutional investors, may strengthen Ethereum's position in the market. Market watchers will keep a close eye on future developments.
