ETFs
Crypto Becomes a US Election Issue: Cathie Wood Explains 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 by stating that cryptocurrency has become a central issue in American politics. Wood suggested that this policy shift was a key factor in the unexpected decision by the U.S. Securities and Exchange Commission (SEC). approval of several exchange-traded funds on ether (AND F).
Crypto and politics: a new link
On May 29, during the Consensus Conference 2024, Wood discussed the SEC’s unexpected approval of Ethereum spot ETFs. According to Wood, this decision was influenced by two main factors: the recent passage of FIT21 by the House and former President Donald Trump’s growing involvement in the crypto community.
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 believes this caught the attention of the Biden administration, leading to the SEC’s sudden approval of ETFs.
Unexpected approval from the SEC
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.
Bitcoin on Ethereum, “any day”
In other interviews, Cathie Wood highlights her preference for Bitcoin over Ethereum. At Consensus 2024, she described Bitcoin as her top investment choice, highlighting its unique qualities as a “global monetary system,” “technology,” and “new asset class.” Wood believes that Bitcoin’s potential far exceeds other cryptocurrencies.
Wood envisions Bitcoin capturing up to 20% of the world’s money supply, similar to examples like El Salvador, where Bitcoin is legal tender. She views Bitcoin as an “insurance policy” against economic instability.
Praise for El Salvador’s crypto policy
Cathie Bois praised El Salvador’s Bitcoin policy after meeting 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.”
The Salvadoran government, holding at least 5,700 BTC, plans 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.