Alex Thorn, Head of Research at Galaxy Research, has suggested that the U.S. Securities and Exchange Commission (SEC) may differentiate between Ethereum (ETH) and staked Ether, potentially classifying the latter as a security. This distinction could pave the way for regulatory approval of spot Ethereum ETFs. Thorn believes that the SEC might prohibit ETFs from staking their held ETH, maintaining a strict regulatory framework around staked assets and other altcoins.

Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart have increased their predicted likelihood of a spot Ether ETF approval from 25% to 75%. This follows discussions implying that the SEC might adopt a more favorable stance towards these applications. The SEC's decision on the VanEck spot Ether ETF is expected on May 23.

The potential SEC approval has positively impacted Ethereum's value, which has surged by over 20% following the news. This optimistic market response contradicts the earlier consensus that approval was unlikely, indicating a positive shift in market sentiment.