Ethereum Today (Nov. 11, 2025): IRS clears staking for ETFs, ETH holds near $3.56K as ‘Fusaka’ upgrade approaches

Meta description: Ether trades around $3.56K while the IRS creates a safe harbor for staking in crypto ETFs and Ethereum’s Fusaka upgrade is locked for Dec. 3—here’s what it means for price, flows and the network.

Key takeaways

• ETH is range‑bound near $3.55K–$3.60K as traders wait for a decisive move. ^[1]
• The IRS issued a formal safe harbor that lets U.S. crypto ETFs and grantor trusts stake proof‑of‑stake assets (like ETH) without jeopardizing their tax status—potentially unlocking staking yield for mainstream investors. ^[2]
• Spot ETH ETF flows showed no daily change going into Tuesday, suggesting investors are digesting the rule change. ^[3]
• Ethereum’s “Fusaka” network upgrade is locked for Dec. 3, 2025, headlined by PeerDAS and other improvements that expand blob throughput and raise the default gas limit. OP Stack chains have published readiness notices. ^[4]
• Market structure is mixed: ETH continues to lag BTC on the ETH/BTC ratio, but on‑chain data points to renewed whale accumulation into the upgrade. ^[5]

Market snapshot: ETH stays in a tight coil

Ether (ETH) traded roughly flat on Tuesday, hovering around $3,55K–$3,58K in a narrow range as crypto markets consolidated after a choppy start to November. Intraday reporting put ETH “near $3,550,” with most venues showing modest, low‑volatility drift around $3.57K. Traders are watching for either a break higher toward last week’s highs or a lower‑high that confirms the downtrend from October’s peaks. ^[6]

Context: Options and futures positioning suggest calm at the front end while downside protection remains bid, a setup consistent with a market waiting on a fresh catalyst. ^[7]

Policy shift: IRS green‑lights staking inside crypto ETFs

In a landmark step for proof‑of‑stake assets, the U.S. Internal Revenue Service released Revenue Procedure 2025‑31, creating a safe harbor that allows exchange‑traded products (ETPs) and grantor trusts to stake digital assets (e.g., ETH) without losing their investment‑trust/grantor‑trust tax treatment. Key elements include:

• Single‑asset focus: The trust may hold only cash and one PoS asset.
• Qualified custody & control: The custodian alone controls the keys and can stake/unstake on the trust’s behalf; the trust retains ownership at all times.
• Arms‑length providers: Staking must be done via unrelated third‑party providers on market terms.
• Liquidity safeguards: Written liquidity policies are required; staking can be reduced temporarily to meet redemptions.
• Payout cadence:Staking rewards must be distributed at least quarterly (in‑kind or cash).
• Timing: The procedure is effective for tax years ending on or after Nov. 10, 2025, with a nine‑month window for existing trusts to amend their documents. ^[8]

Why it matters for ETH: This tax clarity removes a key blocker for staking‑enabled ETH products and could broaden institutional participation by letting ETF investors access native staking yield within regulated wrappers. Early industry write‑ups frame it as a meaningful unlock for Ethereum and Solana ETPs. ^[9]

Flows: Spot ETH ETFs flat as investors digest the news

Daily spot ETH ETF flows showed $0 million in net movement heading into Tuesday, per Farside figures summarized by CoinDesk’s Daybook, even as Bitcoin products saw small inflows. That pause is consistent with investors evaluating the new IRS framework and how quickly sponsors can operationalize staking in compliant structures. ^[10]

Network: ‘Fusaka’ upgrade locked for Dec. 3—what’s changing

Ethereum core developers have set Dec. 3, 2025 at ~21:49 UTC for the Fusaka mainnet activation. The release’s headline is PeerDAS (EIP‑7594), a data‑availability sampling mechanism that enables significantly higher blob throughput for rollups without overburdening node bandwidth. Other notable items:

• Gas limit raised to 60M by default (EIP‑7935) to improve L1 execution capacity.
• secp256r1 precompile (EIP‑7951) to enable easier integrations with mainstream hardware security (e.g., WebAuthn devices).
• CLZ opcode (EIP‑7939) for efficiency gains (helpful in ZK contexts).
• A post‑fork Blob Parameter Only (BPO) schedule incrementally scales blob targets from 10/15 to 14/21 per block in December and January. ^[11]

Downstream ecosystems are preparing: OP Stack teams have issued Fusaka readiness notices for L2 operators to ensure compatibility at L1 fork time (this is not L2 adoption of Fusaka features, but a compatibility upgrade). ^[12]

Why it matters: PeerDAS and higher blob capacity directly target L2 costs and throughput—conditions that, over time, can support more on‑chain activity without sacrificing decentralization. ^[13]

Market structure: ETH/BTC still heavy—but whales are nibbling

The ETH/BTC ratio remains in a falling channel, signaling continued relative underperformance versus Bitcoin. A clean breakout from this channel would be a constructive tell for broader altcoin risk. Until then, rotation risk persists. ^[14]

That said, on‑chain positioning shows large wallets accumulating ETH into weakness this month. Analysts cited by Decrypt highlight rising balances among 10K–100K ETH cohorts and spot order‑flow signatures that have preceded prior local bottoms, especially with a fundamental catalyst (Fusaka) now less than a month away. ^[15]

What to watch next (near‑term catalysts)

• Core dev coordination: All Core Devs calls continue this week, including Consensus (ACDC) #169 on Nov. 13, ahead of the Dec. 3 mainnet fork, followed by Execution (ACDE) #225 next week. These checkpoints can surface final‑mile client updates or parameter tweaks. ^[16]
• ETF sponsor moves: Watch for amended trust documents and filings from ETH ETF issuers adopting the IRS staking safe harbor—a step that could materially impact net yields and flows once live. ^[17]
• Lido DAO community call (Nov. 11): Governance and roadmap updates from the largest liquid‑staking protocol remain relevant for ETH staking dynamics. ^[18]

Bottom line

Ethereum heads into mid‑November with price calm, a major policy win, and a firm upgrade date. Near‑term, the IRS safe harbor reduces uncertainty for staking‑enabled ETH products while Fusaka aims to lower L2 costs and expand capacity—two developments that can support adoption and, eventually, on‑chain activity. For now, flows are subdued and ETH continues to lag BTC, but accumulation under the surface and a clear upgrade timeline set up a higher‑stakes December. ^[19]

Editorial note: This article is for information only and is not investment advice. Always do your own research.

References

1. www.coindesk.com, 2. www.irs.gov, 3. www.coindesk.com, 4. blog.ethereum.org, 5. www.coindesk.com, 6. www.coindesk.com, 7. www.coindesk.com, 8. www.irs.gov, 9. www.coindesk.com, 10. www.coindesk.com, 11. blog.ethereum.org, 12. docs.optimism.io, 13. blog.ethereum.org, 14. www.coindesk.com, 15. decrypt.co, 16. ethereum-magicians.org, 17. www.irs.gov, 18. www.tradingview.com, 19. www.irs.gov