Cathie Wood, CEO and CIO of Ark Invest, recently expressed her opinion on the likelihood of the US Securities and Exchange Commission (SEC) approving exchange-traded funds (ETFs) for cryptocurrencies beyond bitcoin and ethereum .
during a bitcoin-ether-Xq4NsWtdn3c2tQsqyER3″ target=”_blank” rel=”noopener”>appearance On the Wall Street Journal's “Take On the Week” podcast, Wood mentioned, “We would be surprised to see the (SEC) approve anything other than bitcoin and ether.” This statement reflects a cautious outlook on the regulatory acceptance of cryptocurrency ETFs in the United States.
Wood's comments underscore the ongoing debate over the classification of cryptocurrencies, with the SEC approval process being a critical hurdle for many digital assets seeking to gain legitimacy and broader market access through ETFs. SEC Chairman Gary Gensler previously characterized bitcoin (btc) as a commodity, a stance that opened the doors to bitcoin ETFs but left ethereum (eth) and other cryptocurrencies in a regulatory gray area.
Although ethereum has been labeled a commodity by figures such as Commodity Futures Trading Commission (CFTC) Chairman Rostin Benham, this does not guarantee similar non-securities treatment by the SEC. This distinction is crucial as it influences the likelihood of regulatory approval of ETFs based on these assets.
Gensler's recent comments suggest that the SEC's recent approval of a spot bitcoin ETF, a major milestone for Ark Invest in partnership with 21Shares, does not indicate broader acceptance of cryptocurrency ETFs.
Ark Invest, in collaboration with 21Shares, has been at the forefront of exploring cryptocurrency ETFs, offering several funds based on bitcoin futures strategies and ethereum futures strategies. Additionally, Ark is actively seeking approval for an ethereum spot ETF, a decision eagerly awaited by the market that has implications for other proposals like VanEck's.
Interest in cryptocurrency ETFs extends beyond bitcoin and ethereum, with particular attention to the potential of an XRP ETF. Despite the absence of a US-based XRP ETF, Ark partner 21Shares offers an XRP ETP in Switzerland, highlighting global interest in cryptocurrency investment products.
Wood also commented on the broader market dynamics, pointing to a shift from gold to bitcoin as an investment asset. This trend is supported by the behavior of bitcoin investors, as a significant portion of the circulating supply remains intact for extended periods, indicating a long-term investment horizon among holders.
As the cryptocurrency market continues to evolve, the regulatory landscape will play a critical role in shaping the availability and variety of investment products such as ETFs. With key decisions expected in the coming months, investors and market watchers alike are closely watching the SEC's moves, which could significantly affect the trajectory of the cryptocurrency market.
At the time of writing, the price of bitcoin experienced a slight drop, trading at $49,802, which is a 1% decrease in the last 24 hours, according to data from CoinMarketCap.