Ethereum’s ether surged on Tuesday to its highest level since mid-November, outpacing bitcoin and leading crypto markets higher. The second-largest cryptocurrency climbed to just under $3,400, marking an 8.4% gain over 24 hours compared with bitcoin’s 4.5% rise and the CoinDesk 20 Index’s 6% advance.

The rally also lifted the ETH/BTC ratio — a key gauge of ether’s performance relative to bitcoin — to its strongest level since late October, signaling rotation from BTC into ETH.

Joel Kruger, market strategist at LMAX, attributed the surge to “improving regulatory expectations and renewed optimism around ETF-related inflows,” noting that staking could soon be incorporated into funds. A major catalyst was BlackRock’s filing Monday for the iShares Ethereum Staking Trust, which would allow investors to earn yield from staking ETH.

Kruger added that the filing “revives optimism around ETH-focused inflows and the prospect of yield-bearing crypto products reaching a broader investor base.” He cautioned that regulatory timelines remain uncertain but said the news has bolstered ETH’s relative stability versus bitcoin.

Ether could also benefit from regulatory developments supporting real-world asset tokenization, a growing trend bringing financial instruments such as bonds, funds, and real estate onto Ethereum-based smart contract platforms.