Author: Sam Reynolds, CoinDesk; Compiler: Wuzhu, Golden Finance
Key documents for the proposed Ethereum exchange-traded fund (ETF) were suddenly and unexpectedly approved.
FIT21's unexpected approval and passage in the House of Representatives shows that cryptocurrency has become an election issue.
Ark will not make money from its Bitcoin ETF.
Cryptocurrency has now become an issue in the US election, which is why key documents for the proposed Ethereum exchange-traded fund (ETF) were suddenly and unexpectedly approved, said Cathie Wood, CEO of ARK Invest.
“People thought it wasn’t going to be approved. It absolutely wasn’t going to be approved,” Wood told What Bitcoin Did podcast host Peter McCormack on stage at Consensus 2024. “If it had been approved in the regular way, we would have been getting inquiries from the SEC. Nobody has been getting inquiries from the SEC before.”
Wood, who is also the firm’s chief investment officer, said sentiment in the House of Representatives is changing over the Financial Innovation and Technology for the 21st Century Act, or FIT21. The bill passed last week with bipartisan support, making it clear that this could be an election-year issue.
“The other thing that happened was former President Trump became more comfortable with bitcoin and cryptocurrencies. That week, he said he would accept campaign contributions in cryptocurrencies,” which raised concerns in the administration, Wood said.
Wood also said that while the solana ETF might be approved, an exchange-traded fund focused on meme coins is unlikely to be established because large institutions such as large brokerage firms and investment advisory firms will not accept funds that are not in the "dominant" category.
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, which was approved in January and charges 0.21%, will not make money.
“We should make [the ETF] accessible to as many people as possible, so we want to keep fees very low.”
She also announced that ARK will set aside a percentage of its private fund revenue to support bitcoin developers, ensuring they receive continued support regardless of the ETF’s profitability.
Bitcoin vs. Ethereum
Wood is known for being bullish on bitcoin, predicting that the price of the cryptocurrency could reach $1.5 million by 2030 and calling it the “financial superhighway.”
While Ethereum (ETH) is having its moment due to progress on Ethereum ETF approvals, Wood didn’t hide her stance on Bitcoin when asked if she’d rather hold Bitcoin or Ethereum.
“Bitcoin is hands down the top pick. It’s a global monetary system. It’s a technology and it’s a new asset class. Those three ideas come together in one, and there’s nothing else in the crypto world that can compete with that.”
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