The SEC's request for spot Ethereum ETF applicants to update their 19-b4 filings has generated increased optimism regarding potential approvals, according to sources.

On May 20, Bloomberg ETF analyst Eric Balchunas suggested that the SEC might deviate from its anticipated stance and opt not to reject the pending applications. ETF Store President Nate Geraci speculated that the SEC might approve 19-b4 exchange listing rules while deferring its decision on S-1 registration statements.

James Seyffart corroborated this information, indicating that he and Balchunas had heard from multiple sources, and anticipated several new filings in the coming days.

FOX Business reporter Eleanor Terret also confirmed through her sources that the SEC has instructed issuers to update their 19b-4 filings, characterizing the situation as "evolving in real-time."

Balchunas and Seyffart revised their odds for the approval of a spot Ethereum ETF to 75%, up from their previous estimates of 25% to 30%. Balchunas observed that the issue has become increasingly politicized, a sentiment echoed in discussions over the past week.

The looming deadlines add urgency, particularly regarding VanEck's proposal for a spot ETH ETF due on May 23. However, multiple applications may be decided simultaneously.

Despite the optimistic outlook, some remain skeptical. Blockchain Association Director of Government Relations Ron Hammond suggested that political indicators and issuer comments might lead to application denials.

These developments coincide with a sudden surge in ETH prices, which rose by 20% over 24 hours, with most gains occurring within two hours of Balchunas' announcement. Overall, the crypto market rose by 6.7% over 24 hours, with Bitcoin up by 5.2%.