Cathie Wood Attributes Ethereum ETF Approval to US Political Climate, Predicts Solana ETF Next
Cathie Wood, the CEO of ARK Invest, believes that the approval of the Ethereum (ETH/USD) ETF is heavily influenced by the political landscape in the United States, suggesting that a Solana (SOL/USD) ETF could be the next in line.
What Happened:
According to CoinDesk, Wood made these remarks at Consensus 2024, attributing the unexpected approval of the Ethereum ETF to the growing significance of cryptocurrencies in the US election debates. Wood expressed her surprise at the approval, stating, “I mean, it wasn’t supposed to be approved. It absolutely wasn’t supposed to be approved.” She explained that evolving sentiments around the “Financial Innovation and Technology for the 21st Century Act” (FIT21) in the House have led to its recent bipartisan approval.
Wood also highlighted former President Donald Trump’s increasing favorability towards Bitcoin and other cryptocurrencies, including his recent decision to accept crypto campaign donations, as a factor drawing more attention to the sector.
While Wood suggested that a Solana ETF might gain approval, she was skeptical about funds focused on meme coins receiving the same treatment, noting that major brokerage and investment advisory firms are unlikely to support funds outside of the “professional” category.
Significance:
Cathie Wood has a history of forecasting the potential of cryptocurrencies, particularly Bitcoin (BTC/USD). In April 2024, she raised her Bitcoin price prediction to $2.3 million, indicating that a $1,000 investment today could be worth a substantial amount by 2030.
Despite Ethereum’s recent spotlight due to the ETF approval, Wood remains bullish on Bitcoin, asserting, “Bitcoin, no doubt. No doubt. It’s a global monetary system. It’s a technology and a new asset class.”
Earlier this week, Wood emphasized that El Salvador’s push for Bitcoin and artificial intelligence could increase its GDP tenfold within five years.
According to SoSo Value, on May 29, the ARK 21Shares Bitcoin ETF (ARKB) attracted $4 million in inflows, bringing the total since the ETF began trading in January to approximately $3 billion.
