ETFs
Cathie Wood says Ether ETF deposits were approved because crypto is an election issue
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Key documents for the proposed Ether exchange-traded fund (ETF) were approved suddenly and unexpectedly.
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The surprise approval and passage of FIT21 in the House indicates how crypto has become an election issue.
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Ark will not make money from its Bitcoin ETF.
AUSTIN, TX — ARK Invest CEO Cathie Wood says crypto is now a U.S. election issue, which is why key documents for proposed ether exchange-traded funds (ETFs) have been approved. suddenly and unexpectedly.
“It was understood that this was not going to be approved. This was absolutely not going to be approved,” Wood said on stage at Consensus 2024 in an interview with Peter McCormack, host of the What Bitcoin Did podcast. “If this had been approved in the usual way, we would have received questions from the SEC. No one had received questions from the SEC before.”
Wood, who is also the company’s chief investment officer, said sentiment has evolved around the Financial Innovation and Technology for the 21st Century (FIT21) Act in the House. The law passed last week with support from both sides of the aisle.making it clear that this could be an election year problem.
“The other thing that happened was that former President Trump had become much more comfortable with bitcoin and crypto in general. That week he said he would accept crypto campaign donations,” which caught the administration’s attention, Wood said.
Wood also said that while a Solana ETF could be approved, coin-focused funds are unlikely because wire companies – large brokerage firms and investment advisory firms – would only accept no more than “the majors”.
Bitcoin as a public good
Wood also said that ARK’s position is that bitcoin {{BTC}} is a public good and that the Ark 21Shares Bitcoin ETF that was approved in January with a 0.21% fee would not earn money.
“We should do [the ETF] as accessible as possible to as many people as possible, so keep costs very low. »
She also announced that ARK would allocate a percentage of revenue from its private funds to support Bitcoin developers, ensuring that they receive consistent support regardless of the ETF’s profitability.
Bitcoin vs. Ethereum
Wood is well known for her bullish sentiment on Bitcoin, predict that BTC price could reach $1.5 million by 2030 and calling it a “super financial highway.“
Although ether {{ETH}} is having its own moment in the sun thanks to progress in approving ether ETFs, Wood didn’t hold back on her bitcoin stance when asked if she’d rather hold bitcoin or ether.
“Bitcoin, hands down. There’s no doubt about it. It’s a global monetary system. It’s a technology and it’s a new asset class. It’s three big ideas in one, and nothing else in the world of cryptography does not compete with it.