Ethereum ETF Approval: Cathie Wood Sparks Controversy, Hints at Political Play

May 30, 2024

ARK Invest CEO Cathie Wood stirred controversy by suggesting the recent approval of Ethereum Exchange-Traded Fund (ETF) proposals may have been driven by political considerations rather than standard regulatory procedures, citing a lack of communication from the SEC and former President Trump’s growing affinity for cryptocurrencies.

Wood, known for her bullish stance on cryptocurrencies, expressed surprise and skepticism at the Ethereum ETF approval, stating that there were no prior indications from the U.S. Securities and Exchange Commission (SEC) that it was forthcoming. She said that the industry consensus was against approval and the lack of communication from the SEC raised questions about the regulatory process prior to the decision.

“The read was it was not going to be approved. It was absolutely not going to be approved,” the ARK Invest CEO said. “If it were to have been approved the regular way, we would have been getting questions from the SEC. No one was getting questions from the SEC beforehand,” she added.

Wood further speculated on potential political motivations, citing former President Trump’s increased openness toward cryptocurrencies. “The other thing that happened was former President Trump had become much more cozy with Bitcoin and crypto generally. That week, he said he would accept campaign donations in crypto,” which the CEO thinks drew the attention of the Biden administration.

Despite her concerns, Wood underlined the importance of making the ETF accessible and affordable, noting, “We should make [the ETF] as accessible as possible to as many people as possible, so keep the fee very low.” She also announced ARK Invest’s commitment to allocate a portion of its private fund revenues to support Bitcoin developers.

Further highlighting the growing interest in Bitcoin and cryptocurrencies, El Salvador’s President Nayib Bukele met with Wood to discuss Bitcoin, new capital markets, and technological innovation. Wood expressed her admiration for Bukele’s efforts to make El Salvador a haven for Bitcoin and AI communities, predicting a potential tenfold increase in the country’s real GDP over the next five years.

“President Bukele’s determination to turn El Salvador into an oasis for the bitcoin and AI communities – two of the biggest economic and technology revolutions in history – is the reason I believe that its real GDP could scale 10-fold during the next five years,” Wood said.

Wood, a renowned Bitcoin advocate, has consistently maintained a bullish outlook on the cryptocurrency’s future. She has previously predicted that Bitcoin could reach $1.5 million by 2030 and has described it as a “financial superhighway.” 

ARK Invest, in partnership with 21Shares, launched the ARK 21Shares Bitcoin ETF (ARKB) in January 2024, providing investors with direct exposure to Bitcoin. Wood’s firm actively participates in the Bitcoin ecosystem through various investment vehicles, including the ARK Next Generation Internet ETF (ARKW), which holds shares in the Grayscale Bitcoin Trust (GBTC). Additionally, Wood’s recent meeting with El Salvador’s President Nayib Bukele further highlights her commitment to advancing the adoption of Bitcoin and other cryptocurrencies.

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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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