ARK Invest CEO Cathie Wood made a bold statement that the sudden and unexpected approval of the underlying documents for the proposed Ethereum Spot ETFs was due to the influence of cryptocurrencies on the US elections.
Speaking at the Consensus 2024 event, Wood expressed his surprise about the approval, saying, “The comments that were made were that it would not be approved. It definitely would not be approved.” He noted that the usual approval process involves inquiries from the SEC, which was conspicuously absent in this case.
Wood, who also serves as the firm's Chief Investment Officer, noted that sentiment around the Financial Innovation and Technology for the 21st Century Act (FIT21) has developed in the House of Representatives. The bipartisan legislation was passed last week, demonstrating the potential for cryptocurrencies to become an election-year issue.
Touching on the political dimension, Wood stated that former President Trump's recent warm attitude towards Bitcoin and other cryptocurrencies attracted attention. “This week, he said he would accept campaign donations in crypto,” Wood said, indicating a change in the administration's tone.
While Wood sees potential for a Solana ETF to be approved, he expressed skepticism about memecoin-focused funds. Wood explained that brokerage firms, large brokerage firms and investment advisory firms are unlikely to accept more than “core holdings.”
*This is not investment advice.