Key documents for the proposed ether exchange-traded funds (ETF) were approved suddenly and unexpectedly, signaling crypto’s growing importance in U.S. elections. ARK Invest CEO Cathie Wood revealed that the approval came as a surprise, as initial expectations were that it would not be approved. The passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House with bipartisan support highlighted the increasing relevance of crypto in political discourse. Former President Trump’s embrace of bitcoin and crypto further underscored this shift in sentiment.
Wood emphasized that while a solana ETF could potentially be approved, meme coin-focused funds are unlikely to gain traction due to resistance from wirehouses. In addition, Wood discussed ARK’s stance on bitcoin as a public good, emphasizing the importance of making the asset accessible to as many people as possible by keeping fees low.
As for the Ark 21Shares Bitcoin ETF, which was approved in January with a minimal fee of 0.21%, Wood clarified that the ETF was not designed to generate profits. Instead, a portion of ARK’s private fund revenues will be allocated to support Bitcoin developers, ensuring continuous backing for the development of the digital currency.
Despite the growing interest in ether and the approval of ether ETFs, Wood reiterated her bullish stance on bitcoin. She predicted that the price of bitcoin could soar to $1.5 million by 2030, labeling it as a “financial super highway.” When asked to choose between holding bitcoin or ether, Wood unequivocally favored bitcoin, citing its global monetary system, technological advancement, and status as a new asset class as unparalleled features within the crypto space.