ARK Invest CEO Cathie Wood: SEC Approved ETH ETFs for Political Reasons
ARK Invest CEO and CIO Cathie Wood has been making waves in the cryptocurrency world with her recent assertion that the US SEC greenlit spot Ethereum ETFs for political reasons. At Coindesk’s Consensus 2024, Wood pointed to two key developments that may have influenced the SEC’s sudden change in stance.
First, she highlighted the House’s recent passing of FIT21, which defined crypto as an election issue. This move likely caught the attention of regulators and prompted them to reconsider their position on crypto-related ETFs. Additionally, Wood noted that former President Donald Trump’s increasing support for Bitcoin and crypto may have played a role in the SEC’s decision to approve spot ETH ETFs.
Interestingly, Wood stated that the SEC had initially shown no intention of approving the pending spot ETH ETFs, only to make a sudden shift in their stance. This unexpected move took industry insiders by surprise, as typically, issuers would receive questions from the agency before receiving approvals.
On May 23, the SEC approved rule changes that allowed for the listing and trading of eight spot ETH ETF funds, including one jointly offered by Ark and 21 Shares. Wood expressed mixed opinions on the future approval of other crypto ETFs, suggesting that ETFs involving major cryptos like Solana could be accepted by wirehouses, while memecoin funds may face more difficulty.
In addition to discussing crypto ETFs, Wood also shared her thoughts on El Salvador’s Bitcoin policies during a meeting with President Nayib Bukele. She praised Bukele’s forward-thinking approach to Bitcoin, AI, and other technologies, suggesting that these initiatives could significantly boost El Salvador’s GDP in the coming years.
President Bukele is known for his progressive stance on crypto, with the government holding a significant amount of BTC, implementing plans for BTC mining and revenue generation, and even offering citizenship to Bitcoin investors. Wood highlighted the potential economic benefits of Bukele’s policies, emphasizing the importance of embracing technologies like blockchain, AI, and robotics for future growth.
Overall, Cathie Wood’s insights on the SEC’s approval of spot ETH ETFs and El Salvador’s crypto-friendly policies shed light on the evolving landscape of cryptocurrency regulation and adoption. As the industry continues to grow and innovate, it will be interesting to see how these developments shape the future of crypto investing and policymaking.
