Ethereum Perpetual Open Interest Skyrockets After GENIUS Act Shakes Crypto Markets

Ethereum perpetual contracts just got a turbocharge—and Wall Street hasn't even finished its morning coffee. The GENIUS Act's surprise rollout sent derivatives traders into a frenzy, with open interest punching through resistance levels like a bull in a china shop.

Leverage goes brrr

Perps now dominate ETH's derivatives landscape as speculators pile in, betting the regulatory clarity (or lack thereof) from Washington will keep volatility juicy. Never mind that Congress still can't define 'blockchain'—when has ignorance stopped a good old-fashioned casino rally?

Meanwhile in TradFi land...

Goldman Sachs analysts reportedly spent 37 minutes debating whether to call this 'innovation' or 'heresy' before settling on a neutral 'market development.' Meanwhile, ETH's open interest chart looks like a cardiogram after three Red Bulls.

Closing thought: Nothing says 'healthy financial ecosystem' like lawmakers accidentally fueling degenerate gambling while trying to look tech-savvy. The house always wins—especially when it doesn't understand the game.

Key Insights

• Ethereum open interest grew by $10 Billion in one week, following the signing of the GENIUS Act into law.
• Big investors are now paying closer attention to ETH, along with other stablecoin-linked blockchains such as Solana.
• ETH-based ETFs recorded two straight days of inflows, with more money coming in than Bitcoin ETFs during that time.

Ethereum’s perpetual open interest jumped to $28 Billion in one week following the approval of the GENIUS Act.

This comes as institutional investors are shifting their focus to ETH and stablecoin LAYER 1 blockchains.

Notably, ETF inflows and options trading data show growing confidence in Ethereum.

GENIUS Act Sparks Increased Interest in Ethereum

Ethereum’s perpetual open interest ROSE quickly from under $18 Billion to over $28 Billion within a week.

This happened after the GENIUS Act was signed into law last Friday in the United States.

The Act sets more explicit rules for issuing stablecoins, which has drawn attention from institutional investors.

Following the new rules, several corporate treasury firms started building up their holdings of ethereum and other Layer 1 blockchains that support stablecoins.

Networks such as Solana (SOL), Ripple (XRP), and Cardano (ADA) also garnered increased interest.

These companies are stocking up on these assets, much like some have held Bitcoin in the past.

Ethereum exchange-traded funds (ETFs) received more investment inflows than bitcoin ETFs for two days in a row.

This may suggest that investors expect regulators to approve staked spot ETH ETFs soon.

BlackRock’s recent actions support this idea, as they prepare for potential approval and look to offer staking yields on the iShares Ethereum Trust product.

It is worth noting that the new law and these market developments helped bring Ethereum into the spotlight for many institutions.

It showed a shift in focus from Bitcoin to Ethereum and other blockchains that back stablecoins.

Ethereum Options Trading Points to Growing Optimism

It is worth noting that activity in Ethereum’s options market also suggests traders expect prices to rise.

For example, there was strong demand for call options, particularly those with later expiration dates this year.

Examples include ETH call spreads for September and December with strike prices in the $3,400 to $4,500 range.

These trades 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.

At the same time, Bitcoin’s share of the crypto market dropped from 64% to 60%.

On the other hand, Ethereum’s share increased from 9.7% to 11.6%. This shows some money is moving from Bitcoin into Ethereum.

New Company Plans Big ETH Holdings Move

In another development, Dynamix, a publicly traded company, said it will merge with another firm to FORM a new startup, Ether Machine.

This new company plans to hold over 400,000 ETH, worth about $1.5 Billion. That WOULD make it the largest known ETH treasury company, displacing SharpLink Gaming.

Ethereum’s price rose around 21% last week, outperforming Bitcoin. Some market watchers think 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 important for further gains. As of writing, 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. Indexes tracking altcoin performance rose 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.

Additionally, the combination of new regulations, increased institutional interest, and market shifts suggests that Ethereum could remain strong.

More importantly, many investors will be watching closely to see what happens next.