Speculation surrounding the approval of a spot Ethereum ETF in the United States is stirring significant debate among market observers, signaling a potential shift in US crypto policy.

Bloomberg ETF analysts Eric Balchunas and James Seyffart notably raised their odds of spot Ethereum ETF approvals from 25% to 75%, citing a possible change in sentiment within the US Securities and Exchange Commission (SEC). This shift in sentiment, Balchunas suggested, reflects the increasing politicization of the crypto landscape.

Sources indicate that the SEC has requested minor updates to the crucial 19b-4 forms for prospective spot Ethereum ETFs, fueling expectations of imminent approval. Balchunas hinted that these forms could be returned to the SEC by 10 a.m. ET, potentially paving the way for approval as early as the following day.

The looming decision by the SEC, with key deadlines on Thursday and Friday, has kept market participants on edge. Notably, major players like VanEck and ArkInvest/21 Shares are among the applicants vying for spot Ethereum ETF approval, reflecting heightened industry interest.

The recent Senate vote to overturn the SEC's Staff Accounting Bulletin 121 is believed to have influenced this potential reversal in US crypto policy. Industry experts suggest an emerging alliance between Wall Street, crypto, and Washington, with bipartisan support for overturning the bulletin signaling a significant shift in regulatory sentiment.

Bitwise CIO Matt Hougan highlighted the financial incentive driving this bipartisan consensus, emphasizing the potential profitability associated with custodial services for crypto assets. The Senate's decisive vote underscored the growing mainstream acceptance of crypto and its role in driving innovation and economic growth.

However, concerns remain regarding the potential implications of spot Ethereum ETF approvals. Variant Fund Chief Legal Officer Jake Chervinsky cautioned that while approval would signal a major shift in US crypto policy, it could also pose challenges in terms of regulatory oversight and investor protection.

The removal of staking components from some spot Ethereum ETF applications reflects ongoing regulatory concerns surrounding staking cryptocurrencies. Fidelity's recent amendment to its S-1 registration statement, removing references to staking rewards, suggests a cautious approach amid regulatory uncertainty.

Despite these uncertainties, market sentiment remains cautiously optimistic, with analysts and investors closely monitoring developments surrounding spot Ethereum ETF approvals. The recent surge in Ether's price, up 22.6% over the past 24 hours, reflects growing anticipation and speculation within the crypto community.