In a revealing interview with Peter McCormack, host of the What Bitcoin Did podcast, ARK Invest CEO and CIO Cathie Wood made headlines and dropped a MAJOR bombshell.
Cryptocurrency, once a fringe concept, has become a hot-button issue in U.S. politics, according to Wood. This political shift, she suggests, may have been the key factor behind the U.S. Securities and Exchange Commission’s (SEC) surprising approval of several ether exchange-traded funds (ETFs). What does this mean for the future of crypto? Read on to find out.
The New Relationship: Crypto and Politics
During her appearance at the Consensus 2024 conference on May 29, Wood discussed the SEC’s surprising approval of spot Ethereum ETFs. She pointed to two key factors behind this decision: the recent passing of FIT21 in the House and former President Donald Trump’s growing involvement with cryptocurrencies.
Wood highlighted the importance of the Financial Innovation and Technology for the 21st Century Act (FIT21), which makes cryptocurrency a significant electoral issue. This, along with Trump’s acceptance of Bitcoin and other cryptocurrencies—shown by his campaign’s acceptance of crypto donations, marked a major political shift.
Wood suggested that this shift caught the Biden administration’s attention, prompting the SEC’s sudden move towards ETF approval.
SEC Does a 180
Before this sudden approval, the SEC had shown no indication of moving forward with the pending spot ETH ETFs. Typically, the agency would have posed numerous questions to the issuers during the review process.
However, Cathie Wood pointed out that “no one was getting questions from the SEC beforehand.”
Later on May 23, the SEC approved rule changes that now allow the listing and trading eight spot ETH ETF funds, including the joint offering by ARK and 21Shares. This abrupt shift has sparked mixed reactions within the financial community.
Bitcoin Bias Much?
In subsequent discussions, Cathie Wood revealed her preference for Bitcoin over Ethereum. At Consensus 2024, she praised Bitcoin as her top investment choice, highlighting its unique attributes as a “global monetary system,” “technology,” and “new asset class.” Wood firmly believes that Bitcoin’s potential outshines that of other cryptocurrencies.
Wood envisions Bitcoin capturing up to 20% of the global monetary supply, citing examples like El Salvador, where Bitcoin has legal tender status. She sees Bitcoin as a hedge against economic volatility, describing it as an “insurance policy” of sorts.
Applauding El Salvador’s Crypto Journey
Cathie Wood praised El Salvador’s Bitcoin policies after meeting with President Nayib Bukele. She admired Bukele’s approach to Bitcoin, AI, and other technologies, predicting these policies could boost El Salvador’s GDP in five years. Wood called Bitcoin and AI “two of the biggest economic and technology revolutions in history.
With the Salvadoran government holding at least 5,700 BTC, plans are underway to generate revenue from Bitcoin mining, support local businesses, and offer citizenship to Bitcoin investors. Bukele has also introduced ARK Educate’s tech-focused curriculum in schools.
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Want to learn more about the FIT21 Act and its impact on crypto? Read Now: US House Approves FIT21 Bill: A New Era for Digital Asset Regulation
