Alex Thorn, Galaxy Research's Head of Research, suggested that the SEC might draw a distinction between Ethereum (ETH) and staked Ether, potentially categorizing the latter as a security.

This differentiation could offer a regulatory workaround for approving spot Ethereum ETFs. Thorn speculated on the SEC's potential strategy to navigate this distinction, aiming to maintain consistency with previous arguments while possibly allowing for spot Ethereum ETF approvals.

However, he also noted that such approvals might come with restrictions, such as prohibiting ETFs from staking the ETH they hold. This regulatory approach could pave the way for spot Ethereum ETFs while maintaining oversight over staked assets and other altcoins.

Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart raised their estimate of a spot Ether ETF approval from 25% to 75%, suggesting a potential shift in the SEC's stance influenced by political pressure. The analysts emphasized the need for both 19b-4 and S-1 approvals, with the SEC's decision on the VanEck spot Ether ETF expected soon.

Despite earlier skepticism, Ethereum's value surged over 20% on news of the potential approval of spot ETH ETFs by the SEC.