Cathie Wood says Ether ETF pitch was approved because cryptocurrencies are an election issue

• Key documents for the proposed exchange-traded fund (ETF) were approved suddenly and unexpectedly.

• The surprise approval and passage of FIT21 in the House indicates how cryptocurrencies have become an election issue.

• Ark will not profit from its bitcoin ETF.

AUSTIN, TX — Cathie Wood, CEO of ARK Invest, said cryptocurrencies are now an election issue in the United States, which is why key documents for the Ether (ETF) proposal have been approved suddenly and unexpectedly.

“The reading was that it would not pass. It absolutely would not pass,” Wood said on stage Consensus 2024 in an interview with Peter McCormack, host of the podcast What Bitcoin Did. “If it had been approved on a regular basis, we would have received questions from the SEC. Nobody would have received questions from the SEC in advance.”

Wood, who is also the firm’s chief investment officer, said sentiment has evolved around the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House. The law passed last week with support from both sidesclarifying that this could be an election year issue.

“The other thing that happened is that former President Trump had become much more comfortable with bitcoin and cryptocurrencies in general. That week, he said he would accept campaign donations in cryptocurrencies,” which attracted attention of the administration, Wood said.

Wood also said that while a solana ETF could be approved, funds focused on meme coins are unlikely because wirehouses – the large brokerage firms and investment advisory firms – would no longer accept “majors”.

Bitcoin as a public good

Wood also said that ARK’s position is that bitcoin {{BTC}} is a public good and that the Ark 21Shares Bitcoin ETF approved in January with a 0.21% fee would not generate earnings.

“We should do it [the ETF] as accessible as possible to as many people as possible, so keep the fee very low.”

He also announced that ARK will allocate a percentage of its private funds’ revenues to support Bitcoin developers, ensuring they receive ongoing support regardless of the ETF’s profitability.

Bitcoin vs Ethereum

Wood is well known for her bullish sentiment on bitcoin, predicting that the price of BTC could reach $1.5 million by 2030 and calling him “financial super highway.“

While ether {{ETH}} is having its moment in the sun thanks to progress in the approval of ether ETFs, Wood didn’t hold back on her stance on bitcoin when asked whether she would prefer to hold bitcoin or ether.

“Bitcoin, without a doubt. There is no question. It is a global monetary system. It is a technology and it is a new asset class. These are three great ideas in one, and nothing else in the cryptocurrency world can compete with it. ” .”

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