The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards approving spot Ethereum Exchange-Traded Funds (ETFs), according to recent reports. The SEC staff has informed exchanges that they are "leaning towards approving" these financial instruments, a move that has sent shockwaves through the cryptocurrency market.

The SEC's decision comes after issuers, including BlackRock and VanEck, previously stated that the regulator showed little interest in spot Ether ETFs. However, the tide has turned, and the SEC now appears poised to make a final decision on the matter as early as this week.

Exchanges and issuers have been given a tight timeline to update their filings, with a deadline set for 10:30 AM on the day of the decision. Fidelity, a spot Ethereum ETF applicant, has already amended its S-1 filing, potentially in response to SEC guidance, removing the staking feature.

The growing momentum in the cryptocurrency ETF space has been further bolstered by Grayscale's submission of an updated 19b-4 form for its Ethereum Mini Trust, a critical step towards launching a spot Ethereum ETF.

As the market eagerly awaits the SEC's decision, analysts have significantly increased the probability of spot Ether ETF approval from 25% to 75%. The potential approval has already had a positive impact on the broader crypto market, with Ethereum's price jumping 22% in the past 24 hours, currently trading at $3,741.

The approval of spot Ethereum ETFs would mark a significant milestone for the cryptocurrency industry, providing investors with a regulated and accessible way to gain exposure to Ethereum. As the SEC's decision looms, the crypto community remains cautiously optimistic, anticipating a transformative shift in the way digital assets are perceived and traded.