Ethereum has successfully activated the Fusaka upgrade on mainnet, marking its second major network enhancement in 2025.
With PeerDAS now live, ETH has surged past the critical $3,200 resistance zone, and traders are watching whether the rally can sustain and even extend further.
Fusaka Goes Live
Ethereum confirmed the Fusaka mainnet activation on December 3 at 22:04 UTC. The upgrade introduces PeerDAS technology, which unlocks up to 8x data throughput for rollups, raises the gas limit from 45 million to 60 million units, and adds R1 curve support for improved user experience. Currently, Ethereum processes between 1.3 and 1.8 million transactions daily and holds over $73 billion in value locked in DeFi.
For L2 and Layer 2 rollups, Fusaka is even more relevant. PeerDAS increases the available space for blobs and prepares gradual capacity increases in future forks focused solely on data. The goal is clear: to maintain very low fees on networks like Arbitrum, Base, or Optimism, even if demand continues to grow.
Community members will monitor the network for issues over the next 24 hours.
Fusaka is live on Ethereum mainnet!
– PeerDAS now unlocks 8x data throughput for rollups – UX improvements via the R1 curve & pre-confirmatons – Prep for scaling the L1 with gas limit increase & more
Community members will continue to monitor for issues over the next 24 hrs.
ETH is trading at $3,231, up 7.38% over the last 24 hours. The price has cleared the $3,154-$3,200 supply cluster that marked strong resistance, a move that traders see as a bullish signal.
The pattern echoes the pre-Pectra phase in May 2025, when Ethereum surged 56% in just seven days following that upgrade. Technical charts show a classic bullish divergence: while price marked a lower low between November 4 and December 1, RSI printed a higher low—a setup that often signals weakening selling pressure.
On-chain data supports the bullish case. Addresses holding at least $1 million in ETH have increased from 13,322 to 13,945, representing roughly $623 million in additional accumulation by large holders.
Key Levels to Watch
With the $3,200 zone now cleared, the next target sits at $3,653. If the rally extends 56% from Pectra, a move toward $4,262 comes into view.
On the downside, $3,200 now serves as the first support to hold. A break below $2,996 would weaken the bullish structure, exposing $2,873 and potentially $2,618.
For now, sustaining above $3,200 will determine whether Fusaka marks the beginning of a new bullish phase.
From Nov. 24 to Dec. 2, 2025, JPMorgan launched leveraged notes tied to BlackRock’s Bitcoin ETF, Vanguard reversed its crypto ban, and Nasdaq quadrupled IBIT options limits. Three moves in nine days created one outcome: Bitcoin’s absorption into traditional finance and institutions.
Analyst Shanaka Anslem Perera describes that this rapid convergence marked a foundational change in how institutional capital accesses digital assets. Leading banks and asset managers expanded crypto offerings, distribution channels, and regulatory frameworks, redefining Bitcoin’s role in global finance.
The November Convergence: Coordinated Infrastructure Expansion
Traditional finance long observed Bitcoin from a distance. By late 2025, however, digital asset infrastructure reached a tipping point. The transformation began with SEC approval of spot Bitcoin ETFs in January 2024, offering a regulated path for institutional investment.
JPMorgan’s Nov. 24 filing detailed leveraged structured notes providing up to 1.5x returns on BlackRock’s iShares Bitcoin Trust ETF through 2028. These securities targeted sophisticated investors seeking amplified exposure while retaining legal protections. Notably, the notes exposed investors to significant downside, risking principal loss if IBIT declined by roughly 40 percent or more.
That same week, Nasdaq announced on Nov. 26 that it would raise IBIT options position limits from 250,000 to 1,000,000 contracts. This acknowledged the growth in both market capitalization and volume, supporting the need for volatility-hedged products for institutional portfolios. As Perera’s structural analysis noted, broader options infrastructure allowed institutions to manage Bitcoin volatility, aligning digital assets with standard risk controls.
On Dec. 2, Vanguard completed the picture. The world’s second-largest asset manager reversed its long-standing opposition and opened Bitcoin and crypto ETFs to clients holding around $11 trillion in assets. Vanguard’s move, made during a market correction, signaled strategic timing rather than speculative chasing.
This turning point coincided with a wave of retail exits. Bitcoin ETF redemptions soared as individual investors sold amid price drops. Meanwhile, institutional capital took the other side. Abu Dhabi Investment Council and similar sovereign entities increased their Bitcoin allocations as retail sentiment reversed.
Bank of America authorized 15,000 financial advisers to allocate Bitcoin to wealth clients starting Jan. 5, 2026. Advisers recommended a 1 to 4 percent exposure for clients able to stomach volatility, highlighting four ETFs: the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, the Grayscale Bitcoin Mini Trust, and the BlackRock iShares Bitcoin Trust. This guidance marked a significant shift for an institution with $2.67 trillion in assets across more than 3,600 branches.
“2024: Vanguard CEO says they will not offer Bitcoin ETFs 2025: Vanguard offers Bitcoin ETFs to 50 million clients Vanguard and JPMorgan have bent the knee,” eOffshoreNomad posted.
Similarly, BlackRock recommended allocating up to 2 percent of portfolios to Bitcoin, citing risk levels comparable to those of the “Magnificent 7” technology stocks. The unified approach across institutions suggested coordinated messaging, if not formal cooperation. Advisers received consistent direction on allocations, risk communication, and client selection from competing firms.
Goldman Sachs took a different approach by acquiring Innovator Capital Management for about $2 billion. This gave Goldman instant distribution and compliance pathways for crypto products, saving years of internal development and providing an established network.
MSCI Index Exclusion: Eliminating Competing Models
While financial institutions expanded ETF infrastructure, other models faced obstacles. On Oct. 10, 2025, MSCI announced a consultation to exclude firms with substantial digital asset treasury holdings from major indices. The preliminary list included Strategy Inc., Metaplanet, and similar companies that pioneered corporate treasury Bitcoin adoption.
The proposal targeted companies in which Bitcoin or other digital assets accounted for an outsized share of the balance sheet. Removal from the MSCI Global Investable Market Indices would force these firms out of passive investment funds and major benchmark-tracking ETFs. The consultation is open until Dec. 31, 2025, with final decisions coming by Jan. 15, 2026.
The timing was notable. Strategy Inc., for example, attracted those wanting Bitcoin exposure without financial intermediaries or ETF fees. But, as MSCI proposed exclusion, major banks introduced new fee-generating ETF options. This created pressure on alternative exposure approaches.
Regulatory clarity accelerated institutional adoption through 2025. Laws such as the GENIUS Act and related orders defined the treatment of digital assets and reduced legal risks for large financial firms. These rules aligned digital assets with existing securities compliance, encouraging institutional entry.
Fee-Based Capture and the End of Alternative Exposure
The nine-day convergence was about more than new products. It firmly established Bitcoin as a fee-earning asset class for traditional finance. Leveraged notes, options, and ETF allocations each bring recurring revenue, while direct treasury and self-custody models now face obstacles such as index exclusions and higher regulatory requirements.
With expanded options, institutions can now manage volatility, making Bitcoin suitable for risk-parity portfolios and mandates with strict limits. The infrastructure shift means Bitcoin now acts as a portfolio component, not just a speculative asset. Yet, this shifts price discovery to derivatives, not spot trading.
The institutional system mirrors other asset classes. Allocations and risk disclosures are harmonized. Licensed advisers guide clients, and products feature standardized fees and messaging. Bitcoin, initially meant to circumvent the system, is now absorbed into the very architecture it once challenged.
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