Cathie Wood Says Ether ETF Filings Were Approved Because Crypto Is an Election Issue

As a seasoned crypto investor, I’ve seen my fair share of unexpected twists and turns in this dynamic market. The sudden approval of key documents for proposed ether ETFs left me astonished, especially given the previous uncertainty surrounding their fate. This unexpected turn of events highlights how crypto has become a significant election issue in the U.S., with the recent passing of FIT21 in the House and former President Trump’s newfound interest in digital currencies.

In Austin, Texas, Cathie Wood, the head of ARK Invest, expressed her belief that cryptocurrency has become a significant topic in the ongoing U.S. elections. As a result, regulatory bodies have expedited their review process for proposed ether ETFs, surprising many with their sudden approval.

Wood stated during his appearance at Consensus 2024 on the What Bitcoin Did podcast with Peter McCormack, “The approval wasn’t going to happen. It wasn’t going to happen at all,” he emphasized. “Had it been approved through the usual channels, we would have faced inquiries from the SEC. No such inquiries were received prior to this.”

The chief investment officer of the firm, Wood, remarked that the attitude towards the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House has shifted. This bill, which passed last week with bipartisan backing, indicates that it could become a significant topic during election season.

Former President Trump showed increased interest in Bitcoin and cryptocurrencies last week. He announced his intention to accept digital campaign contributions. This revelation attracted notice within the administration, according to Wood.

Wood expressed that although a Solana Exchange-Traded Fund (ETF) might receive approval, Memcoin-centric ETFs seem unfavorable due to the reluctance of major brokerage firms and investment advisers to support anything beyond the established majors.

Bitcoin as a public good

Wood, in his statement, expressed ARK’s perspective that bitcoin functions as a public asset. Concerning the ARK 21Shares Bitcoin ETF, which received approval in January carrying a management fee of 0.21%, he indicated that this product would not generate profits.

As a researcher focused on expanding access to investment opportunities, I would recommend keeping the fee for the ETF (Exchange-Traded Fund) exceptionally low to maximize reach and inclusivity.

As an analyst, I would express it this way: I will personally ensure that a portion of ARK’s private fund earnings is dedicated to backing Bitcoin developers. This unwavering commitment to their support remains in place, irrespective of the performance of our Bitcoin ETF.

Bitcoin vs. Ethereum

Wood is famously optimistic about bitcoin, forecasting that its value could hit $1.5 million by the year 2030, and referring to it as a “financial expressway” or “superhighway” for money transactions.

As a crypto investor, I firmly believe that Bitcoin stands out from the crowd. It’s more than just a digital currency; it’s a global monetary system, a revolutionary technology, and an entirely new asset class all rolled into one. Nothing else in the crypto sphere comes close to matching its significance and impact.