The price of Ethereum (ETH) has experienced a significant surge due to the anticipation of approval from the U.S. Securities and Exchange Commission (SEC) for a spot ETH exchange-traded fund (ETF).

Bitcoin also saw a rally in conjunction with ETH, resulting in approximately $400 million in traders’ positions being liquidated, as per the latest data from Coinglass.

Initially, the chances of the SEC approving Ethereum ETFs were slim to none. However, late on Monday, Bloomberg ETF experts Eric Balchunas and James Seyffart raised the odds to 75% from 25%.

In a recent update, Balchunas and Seyffart stated, “James Seyffart and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied).”

According to Jake Chervinsky, a crypto legal expert based in Washington, D.C., the approval of an Ethereum ETF would be a surprising development for those involved in Capitol Hill. He stated, “If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process. That doesn’t mean it won’t happen. It means approval could signal a major shift in US crypto policy after the SAB (Staff Accounting Bulletin) 121 vote, perhaps more important than the ETF itself…It’s hard to believe this SEC would do us any favors like approving the spot ETH ETF. But policy is politics, and crypto has been winning the political battle for months. Maybe the Biden camp saw how many voters Trump could win with one pro-crypto comment and decided to pivot.”

Reuters reported that “four people familiar with the matter” revealed that the SEC has already requested Nasdaq, CBOE (Chicago Board Options Exchange), and the NYSE (New York Stock Exchange) to refine their applications to list spot Ethereum ETFs, indicating that the agency may be prepared to approve the filings.

As of now, Ethereum is currently trading at $3,798.

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