Expert Scott Johnsson Provides Detailed Roadmap and Timelines for the Approval of Ethereum Spot ETF

Ethereum’s journey towards a spot ETF approval involves several important steps, according to Scott Johnsson, Van Buren’s General Partner and General Counsel. In a series of Twitter threads titled “The Road Ahead: A ETH Spot,” Johnsson provides valuable insights into the process.

Johnsson presents a four-step roadmap for spot ETF approval, drawing from the success of the Bitcoin ETF journey. The process starts with securing a DCM Futures Listing, then advancing through ’40 Act Futures ETF and ’33 Act Futures ETF before finally achieving spot approval. He emphasizes the significance of a DCM Futures Listing as a prerequisite for any spot ETF.

In the second section, Johnsson explores Section 6(b)(5) of the Exchange Act, which poses a hurdle for both BTC and potential ETH spot ETFs. He focuses on the impact of the Grayscale ruling on the SEC’s stance, specifically addressing the “significant size” test and the Surveillance Sharing Agreement (SSA).

The third part delves into the SEC’s approval order for BTC spot ETFs, highlighting the reasoning behind addressing concerns of “potential fraud and manipulation.” Johnsson analyzes five key points from the order, pointing out the SEC’s avoidance of the “significant size” test.

Transitioning to the fourth part, Johnsson applies insights from BTC to speculate on the potential approval of an ETH spot ETF. He remains optimistic, highlighting the SEC’s correlation-based rule for approval. However, he cautions about potential challenges and the impact of ongoing regulatory actions against platforms like Coinbase and Binance.

In response to queries about the estimated timeline for spot ETH ETF approval, Johnsson suggests it may take another year or two. He anticipates the need for the early period of the ETH futures market to roll off from the sample period.

The SEC’s path towards approving an ETH spot ETF is complex and uncertain. Share your predictions on the matter.