Shares of Bit Digital, Inc. (BTBT) soared 7.29% in pre-market trading on Monday, as cryptocurrency-related stocks rallied following a significant regulatory development in the crypto space. The surge comes after U.S. President Donald Trump signed the GENIUS Act into law, establishing a federal regulatory system for stablecoins.

The new legislation, which sets requirements such as 100% reserve backing using liquid assets and mandatory monthly public disclosures about reserves, has been viewed positively by investors in the crypto sector. This regulatory clarity is expected to bring more stability and legitimacy to the cryptocurrency market, potentially driving increased adoption and investment.

Bit Digital's impressive pre-market gain outpaced the broader crypto stock rally, with several other companies in the sector also seeing significant increases. For instance, BTCS jumped 17%, while SharpLink Gaming and Upexi both rose 11% in overnight trading. Industry giants like Coinbase and Circle also saw gains, albeit more modest ones at 2% and 1% respectively.

The positive sentiment in the crypto market was further bolstered by Ethereum's price surge above $3,700. Additionally, recent data from Farside revealed that U.S. Ethereum spot ETFs experienced a substantial net inflow of $2.1824 billion last week, indicating growing institutional interest in cryptocurrencies. As a cryptocurrency mining company, Bit Digital stands to benefit from these broader market trends and increased investor confidence in the sector.