The U.S. Securities and Exchange Commission (SEC) appears to be leaning towards approving spot Ether exchange-traded funds (ETFs), prompting a surge in Ether’s value.

Ether traded as high as US$3,710 in the past 24 hours, according to CoinGecko.

Bloomberg analysts Eric Balchunas and James Seyffart have revised their approval probability from 25% to 75%, citing a rise in discussions about expedited 19b-4 filings, a critical step for ETF launches.

This potential regulatory shift has not only elevated Ether’s price but also spurred a wider market rally, with Bitcoin trading above US$70,000 for the first time since April.

The price jump and market optimism coincide with the SEC’s upcoming deadline to rule on VanEck’s spot Ether ETF application by May 23.

While the market reacts positively, Seyffart warns that the necessary S-1 registration statements could still face delays.

The SEC’s evolving stance is influenced by expectations of a potential shift in crypto policies, including a recent cryptocurrency-supportive legislation.