Ethereum's 45% Rally Fueled by Surging Institutional Interest and Stablecoin Clarity, Bernstein Reports

Ethereum (ETH) has experienced a remarkable surge, rallying 45% in just two weeks, a dramatic uptrend that a new report from Bernstein attributes to escalating institutional interest. Analysts at the firm point to increasing ETH allocations from major asset managers like BlackRock, alongside significant purchases by banks and fintech firms utilizing ETH to cover network fees.

A major catalyst for this renewed enthusiasm is the recent passing of the GENIUS Act, which officially recognized stablecoins as legal tender in the U.S. Given Ethereum's dominant position in the stablecoin landscape – hosting a vast majority of the total stablecoin supply – this newfound regulatory clarity is expected to drive even greater adoption and utility for the network and its native asset, ETH. The act's provisions, requiring stablecoins to be fully backed by U.S. dollars or liquid assets and subject to annual audits for large issuers, instills greater confidence in the ecosystem built on Ethereum.

Bernstein's analysis further highlights several other key drivers behind Ethereum's ongoing uptrend:

• Emergence of Ethereum Treasury Firms: A growing number of public companies are adopting Ethereum treasury strategies, making large-scale ETH purchases and holding it as a strategic asset. This mirrors a trend previously seen with Bitcoin and creates a new, sustained source of demand.
• Rising Inflows into Spot ETH ETFs: Spot Ethereum Exchange-Traded Funds (ETFs) have seen unprecedented inflows, reaching record highs in recent weeks. These investment vehicles provide traditional investors with accessible exposure to ETH, attracting substantial capital from both retail and institutional sectors. Notably, BlackRock's iShares Ethereum Trust (ETHA) has seen massive inflows, and the firm is even seeking SEC approval to add staking to its ETH ETF.
• Increased Demand for Staking Yields: The appeal of staking ETH to earn yields continues to attract investors, effectively reducing the liquid supply of ETH available on exchanges. Institutional interest in these yields is further solidifying Ethereum's utility.

Bernstein believes that as tokenized finance and real-world asset (RWA) adoption continue to expand, ETH will remain a central and indispensable asset in institutional portfolios. The convergence of regulatory support, increasing utility driven by stablecoins and DeFi, and direct institutional investment channels are positioning Ethereum for a sustained period of growth, solidifying its role as a foundational layer for the future of finance.

July 2025, Cryptoniteuae