Cathie Wood Says Ether ETF Filings Were Approved Because Crypto Is an Election Issue
Is Crypto a U.S. Election Game Changer?
Cathie Wood, CEO of ARK Invest, stated that the sudden approval of key documents for proposed ether ETFs is due to crypto becoming a U.S. election issue. This unexpected approval coincided with former President Trump expressing more interest in crypto, influencing broader political and regulatory perspectives. Wood emphasized that crypto's increasing relevance in politics led to the swift passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) with bipartisan support.
What led to the sudden and unexpected approval of key documents for the proposed ether ETFs according to Cathie Wood?
Unexpected Approval Linked to Political Factors
Cathie Wood, the CEO of ARK Invest, attributed the sudden and unexpected approval of key documents for the proposed ether ETFs to the politicization of cryptocurrency issues in the U.S. She explained that the approval process deviated from the norm because the crypto issue has become significant in the political arena, particularly in an election year. Normally, such approvals would involve detailed queries and a standard review process by the Securities and Exchange Commission (SEC), but in this case, there were no prior questions from the SEC, indicating an irregular approval process.
Influence of Political Developments
Wood highlighted that the political climate surrounding cryptocurrencies had changed, particularly with the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House, which received bipartisan support. Additionally, former President Trump’s increased openness to cryptocurrency, including his acceptance of crypto for campaign donations, played a role in shifting the administration’s attention and possibly influencing regulatory decisions.
Bitcoin as a Public Good and ETF Strategy
Despite the focus on ether, Wood also discussed ARK's approach to its Bitcoin ETF, emphasizing that it is seen as a public good. She mentioned that the ETF, which has a low fee structure, is not aimed at generating profits but rather at making investment in Bitcoin accessible to a broader audience. ARK also plans to support Bitcoin developers with a portion of its private fund revenues, highlighting a commitment to the cryptocurrency sector beyond immediate financial gains.
What was the unexpected event regarding the approval of key documents for proposed ether exchange-traded funds (ETFs) as mentioned by Cathie Wood?
The unexpected event regarding the approval of key documents for proposed ether exchange-traded funds (ETFs) mentioned by Cathie Wood was the sudden and unexpected approval of these documents. She stated that the proposed ether ETFs weren't approved in a regular way, as there were no questions from the SEC beforehand. This sudden approval is attributed to crypto becoming a U.S. election issue, with the Financial Innovation and Technology for the 21st Century Act (FIT21) passing in the House with bipartisan support. Additionally, former President Trump's acceptance of campaign donations in crypto also played a role in this development.