ARK Invest CEO Cathie Wood has stated that cryptocurrency has become a significant political issue in U.S. elections, leading to the unexpected approval of key Ethereum (CRYPTO: ETH) ETF filings.
What Happened: Wood made this remark at Consensus 2024, as reported by CoinDesk, attributing the sudden approval of Ether ETF filings to the growing importance of cryptocurrency in U.S. election debates.
Wood expressed surprise at the approval, stating, “The read was it was not going to be approved. It was absolutely not going to be approved.” She further explained that the sentiment around the Financial Innovation and Technology for the 21st Century Act (FIT21) evolved in the House, leading to its recent bipartisan approval.
Wood also pointed out former President Donald Trump’s increasing comfort with Bitcoin and other cryptocurrencies, including his recent decision to accept campaign donations in crypto, as a factor that has drawn attention to the sector.
While Wood suggested that a Solana (CRYPTO: SOL) ETF could be approved, she deemed meme coin-focused funds unlikely, stating that large brokerage firms and investment advisory companies would not accept more than “the majors.”
Why It Matters: Wood’s comments come in the wake of her earlier predictions about the potential of cryptocurrencies, especially Bitcoin (CRYPTO: ETF). In April 2024, she raised her Bitcoin prediction by $2.3 million, suggesting that a $1,000 investment could be worth a significant amount by 2030.
Despite Ether’s recent spotlight due to the ETF approvals, Wood maintained her bullish sentiment on Bitcoin, stating, “Bitcoin, hands down. No question about it. It is a global monetary system. It is a technology, and it is a new asset class.”
Earlier this week, she also highlighted how El Salvador’s push for Bitcoin and AI could potentially increase its GDP 10X in five years.
ARK 21Shares Bitcoin ETF (BATS:ARKB) attracted inflows of $4 million on May 29, and around $ 3 billion since the ETFs started trading in January, according to SoSo Value.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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