Ethereum
Cathie Wood explains the SEC’s sudden approval of Ethereum ETFs
In a revealing interview with What Bitcoin Did podcast host Peter McCormack, ARK Invest CEO and CIO Cathie Wood made headlines and dropped a MAJOR bombshell.
Cryptocurrency, once a fringe concept, has become a hot topic in American politics, according to Wood. This policy shift, she suggests, may have been the key factor behind the U.S. Securities and Exchange Commission’s (SEC) surprising approval of several ether exchange traded funds (ETFs). What does this mean for the future of crypto? Keep reading to find out.
The new relationship: crypto and politics
During his appearance at the Consensus Conference 2024 on May 29, Wood discussed the SEC’s surprising approval of Ethereum spot ETFs. She pointed to two key factors behind the decision: the recent passage of FIT21 in the House and former President Donald Trump’s growing involvement in cryptocurrencies.
Wood highlighted the importance of financial innovation and technology for the 21st Law of the century (FIT21), which makes cryptocurrency an important electoral issue. This, along with Trump’s acceptance of Bitcoin and other cryptocurrencies, as evidenced by his campaign’s acceptance of cryptocurrency donations, marked a major political shift.
Wood suggested that this change caught the attention of the Biden administration, prompting the SEC to suddenly move to approve ETFs.
SEC does a 180
Prior to this sudden approval, the SEC had shown no indication of moving forward with the pending spot ETH ETFs. Generally, the the agency would have posed numerous questions to issuers during the review process.
However, Cathie Wood stressed that “no one received any questions from the SEC beforehand.”
Later on May 23, the SEC approved rule changes that now allow listing and trading of eight spot ETH ETFs, including the joint offering of ARK and 21Shares. This abrupt change has sparked mixed reactions within the financial community.
Is Bitcoin Bias Important?
In subsequent discussions, Cathie Wood revealed her preference for Bitcoin over Ethereum. At Consensus 2024, she hailed Bitcoin as her top investment choice, highlighting its unique attributes as a “global monetary system,” “technology,” and “new asset class.” Wood firmly believes that Bitcoin’s potential surpasses that of other cryptocurrencies.
Wood envisions Bitcoin capturing as much as 20% of the world’s money supply, citing examples like El Salvador, where Bitcoin is legal tender. She views Bitcoin as a hedge against economic volatility, describing it as a sort of “insurance policy.”
Applaud El Salvador’s crypto journey
Cathie Wood praised El Salvador’s Bitcoin policy after meeting with President Nayib Bukele. She admired Bukele’s approach to Bitcoin, AI and other technologies, predicting that these policies could increase El Salvador’s GDP in five years. Wood called Bitcoin and AI “two of the greatest economic and technological revolutions in history.”
With the Salvadoran government holding at least 5,700 BTC, plans are underway to generate revenue through Bitcoin mining, support local businesses, and offer citizenship to Bitcoin investors. Bukele also introduced ARK Educate’s technology-focused curriculum into schools.
Also discover: Bitcoin Consolidation Continues: Is BTC Price Preparing for a Huge Move?
Would you like to know more about the FIT21 law and its impact on cryptography? Read now: US House of Representatives Approves FIT21 Bill: A New Era for Digital Asset Regulation