Ether Surges to Two-Month High as ETF Optimism and Regulatory Progress Fuel Rally

Ethereum’s native token, ether (ETH), surged on Tuesday to its highest level since mid-November, outperforming major cryptocurrencies and lifting overall market sentiment. ETH climbed to just under $3,400, marking an 8.4% jump in 24 hours, significantly outpacing bitcoin’s (BTC) 4.5% rise as the leading crypto briefly traded above $94,000. The CoinDesk 20 Index also advanced 6% during the rally.

A key indicator of Ethereum’s momentum, the ETH/BTC ratio, rose to its strongest level since late October, signaling increased capital rotation into ETH. Market strategist Joel Kruger of LMAX attributed this outperformance to improving regulatory expectations and renewed confidence in potential ETH ETF inflows, particularly as staking integrationemerges on the horizon for institutional products.

Fueling this enthusiasm, BlackRock — issuer of the top-performing spot ETH ETF — filed to launch the iShares Ethereum Staking Trust, designed to offer staking yield directly to investors. Kruger noted that this development boosts optimism for broader adoption of yield-bearing Ethereum products, even as regulatory timelines remain unclear. The news has strengthened ETH’s footing relative to bitcoin, reinforcing expectations of continued inflows.

Beyond ETFs, Ethereum stands to benefit from growing regulatory support for real-world asset (RWA) tokenization, a sector rapidly expanding as traditional financial instruments—from bonds to real estate—move onto blockchain platforms. SEC Chairman Paul Atkins recently called tokenization a transformative force for capital markets in a Fox Business interview, highlighting its potential to reduce settlement risk and streamline financial operations.

As enthusiasm builds around staking-enabled ETFs and tokenization’s long-term potential, Ethereum’s rally underscores the market’s increasing confidence in the network’s role in the future of digital assets and decentralized finance.