Another acquisition deal in the biotechnology space for a rare disease specialist is fueling a jump in biotech stocks and sector-related exchange traded funds as traders hope further consolidation will help the industry maintain its momentum.

Dublin-based Shire Plc (NasdaqGS: SHPG) has acquired U.S.-based Dyax Corp (NasdaqGM: DYAX) for about $5.9 billion, or potentially up to $6.5 billion, reports, Ben Hirschler for Reuters.

DYAX shares surged close to 30% on the news.

The Dyax Corp. acquisition is the latest in a record wave of deal-making in the healthcare sector this year, which totaled $477 billion as of last week.

Biotech sector ETFs were among the top performing areas Monday, with the iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB) up 3.2%. IBB is testing its 50-day simple moving average.

Biotechnology sector-specific ETFs that track smaller companies were outperforming as these funds track small, specialized drug makers that could potentially be acquisition targets down the line.

For instance, the BioShares Biotechnology Clinical Trials Fund (NasdaqGM: BBC), which tracks potential up-and-coming biotechnology companies that are in the clinical trials stage, jumped 5.6% Monday. The ALPS Medical Breakthroughs ETF (NYSEArca: SBIO), which focuses on small- and mid-cap companies that have one or more drugs in either Phase II or Phase III U.S. FDA clinical trials, increased 5.6%.