• Ethereum has gained 25% in the past week following the signing of the GENIUS Act.
  • The GENIUS Act establishes a regulatory framework for stablecoins backed by U.S. dollars or liquid assets.
  • Institutional investors are increasing Ethereum allocations due to improved legal clarity and utility.
  • Ethereum exchange-traded funds saw a record net inflow of 726.74 million dollars in one day.
  • The GENIUS Act is driving renewed interest in Ethereums role in financial markets and tokenized assets.

Ethereums native token ETH has recorded a 25% rise in value over the past week amid major regulatory developments. The increase aligns with heightened interest from institutional players and renewed confidence in blockchain-based financial infrastructure. The GENIUS Act, signed last Friday, plays a key role in driving this renewed momentum.

GENIUS Act Spurs Institutional Ethereum Demand

The GENIUS Act has introduced a federal framework for stablecoins, which is boosting Ethereums visibility across financial markets. It mandates full backing of stablecoins with U.S. dollars or equivalent liquid assets and annual audits for large issuers. This regulation strengthens confidence in Ethereum, as stablecoins primarily operate on its network.

Institutional investors are responding by reallocating capital into Ethereum, influenced by enhanced legal clarity and evolving crypto asset strategies. Financial firms are now integrating Ethereum into portfolios, driven by its utility in stablecoin transactions and decentralized finance services. Analysts at Bernstein highlight the GENIUS Act as a central force behind this trend.

Major asset managers including BlackRock are expected to influence further adoption, encouraging banks and fintech firms to hold ETH operationally. These purchases are intended to cover Ethereum transaction fees, which support core blockchain activity. Therefore, Ethereums growing institutional relevance is now directly linked to regulatory support from the GENIUS Act.

Ethereum ETFs See Record Inflows

Last week, spot Ethereum ETFs recorded a daily net inflow of $726.74 million, the highest to date. This surge reflects increasing confidence in Ethereum-based investment products and the broader appeal of blockchain financial infrastructure. ETF growth further confirms Ethereums rising demand among retail and institutional sectors.

Historically, Ethereum ETFs lagged behind their Bitcoin counterparts, but recent developments are shifting this narrative. As investor sentiment improves, trading volume across Ethereum-related instruments continues to strengthen. This shift corresponds with increased financial activity driven by the GENIUS Acts passage.

The renewed interest in ETH-linked funds indicates a broader market transformation favoring regulated digital asset exposure. Bernstein attributes this cycle not to speculation but to structural changes in blockchain financial services. As a result, Ethereum is positioned to benefit more from evolving compliance frameworks.

Ethereums recent gains have triggered a revival in its non-fungible token (NFT) ecosystem, pushing daily trading volumes higher. According to Coingecko, the global NFT market cap climbed 16.9% in 24 hours to $6.04 billion, marking its highest value since early February.

Increased NFT activity suggests growing user engagement across Ethereum-based applications, further validating the networks utility beyond finance. The GENIUS Acts legal support for digital assets is encouraging developers and collectors to return to the market. Ethereums infrastructure remains central to the deployment of many NFT projects.

Stronger regulatory clarity from the GENIUS Act is stabilizing the broader ecosystem, enabling creators and platforms to scale with confidence. Ethereums role as the primary settlement layer for digital art and tokenized assets remains undisputed.