Ethereum surged over 5% on Thursday to $3,432, leading gains in the cryptocurrency market as institutional interest in the blockchain platform intensified, reinforcing its status as a yield-generating digital asset.
The world’s second-largest cryptocurrency has jumped 36% in the past month to its highest level since January, outpacing Bitcoin, which traded flat at just above $118,000 after hitting a record $122,900 earlier in the week.
Ethereum’s appeal is growing among institutions due to its deflationary tokenomics and attractive staking yields between 4% and 6%. Its ability to generate consistent income is a major draw at a time of rising interest in blockchain infrastructure plays.
Supportive sentiment around ether was reinforced by reports that billionaire tech investor Peter Thiel has taken a substantial stake in BitMine, a firm focused on Ethereum-based assets. The news has stoked optimism across the sector, particularly for companies involved in Ethereum mining and infrastructure.
The rally has broad implications for crypto-focused firms that are increasingly exposed to Ethereum-based assets through mining, staking, and investment strategies.
SharpLink Gaming (NASDAQ: SBET) is among several Nasdaq-listed companies — including BitMine, BTCS, Bit Digital, and GameSquare — that have collectively raised over $1 billion in the past two months to establish Ethereum reserves. These firms have accumulated more than 570,000 ETH, according to data from the Strategic ETH Reserve website.
Bit Digital Inc (NASDAQ:BTBT), which recently pivoted further into Ethereum staking and decentralized finance (DeFi), stands to benefit from the rising activity on the network. With the capital from the public offering and the liquidation of its Bitcoin holdings, Bit Digital has now accumulated approximately 100,603 ETH.
"We believe Ethereum has the ability to rewrite the entire financial system,” Bit Digital CEO Sam Tabar told shareholders recently. “Ethereum's programmable nature, growing adoption, and staking yield model represent the future of digital assets.”
The recent surge in Ethereum’s total value locked (TVL) — which rose 36% to $78.2 billion since late June — points to a thriving DeFi ecosystem and greater demand for computational infrastructure.
Fineqia International Inc (CSE:FNQ, OTC:FNQQF), which monitors crypto-based ETFs and ETPs, reported a sharp uptick in Ethereum-backed investment products during the second quarter. Assets under management in ETH-backed ETPs rose 3.3% in June to $13.39 billion, up nearly 59% for the quarter.
“Despite ETH’s underperformance in price terms, investor interest in ETH-backed ETPs has returned,” said Matteo Greco, senior analyst at Fineqia. “Q2 recorded a 61.1% premium for ETH ETPs, signalling substantial net inflows and renewed appetite for crypto assets beyond Bitcoin.”
While ETH ETP assets remain 17.7% below levels at the end of 2024, the Q2 rebound marks a notable reversal from negative flows seen earlier in the year. ETH ETPs remain 17.7% below their AUM at the end of 2024, but the Q2 recovery marks a sharp turnaround from the first quarter, which was marked by negative flows.
Ethereum’s latest gains also lifted sentiment across a broader swath of companies indirectly tied to the crypto sector. Trading platforms like Coinbase Global Inc (NASDAQ:COIN) and Robinhood Markets Inc (NASDAQ:HOOD) typically benefit from increased volumes during crypto bull runs. Meanwhile, miners and infrastructure providers — including Core Scientific, Riot Platforms Inc (NASDAQ:RIOT), and HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE) — may capitalize on the rally’s momentum.
Tech suppliers such as Nvidia Corp (NASDAQ:NVDA, ETR:NVD) and data center firms like Equinix Inc (NASDAQ:EQIX) support the computational backbone of Ethereum and other blockchain networks. Payments platforms including PayPal Holdings Inc (NASDAQ:PYPL, ETR:2PP) and Block Inc (NYSE:SQ), along with asset managers like BlackRock, also stand to gain from rising adoption and the growth of crypto-linked investment products.
Thursday’s ETH surge came despite a 2.2% drop in total cryptocurrency market capitalization to $3.87 trillion, as Bitcoin pulled back. Analysts at blockchain data firm Glassnode cited short-term profit-taking and on-chain signals suggesting a local top for Bitcoin, prompting a rotation into alternative assets such as Ethereum.
Higher transaction fees on Ethereum — a sign of growing demand for blockspace and DeFi applications — have also fueled renewed interest in layer-2 scaling solutions and protocols, creating further tailwinds for companies embedded in the Ethereum ecosystem.