Cathie Wood predicts SEC will limit ETF approvals to Bitcoin and Ethereum

Cathie Wood Predicts SEC Approval for Bitcoin and Ethereum ETFs

Cathie Wood, CEO and CIO of Ark Invest, recently shared her thoughts on the possibility of the U.S. Securities and Exchange Commission (SEC) approving exchange-traded funds (ETFs) for cryptocurrencies other than Bitcoin and Ethereum. According to Wood, it is unlikely that the SEC will approve ETFs based on any other cryptocurrencies.

The Regulatory Debate Around Cryptocurrencies

Wood’s comments highlight the ongoing discussion about how cryptocurrencies should be classified. The SEC’s approval process plays a crucial role in determining the legitimacy and market access of digital assets through ETFs. While Bitcoin has been classified as a commodity by the SEC, Ethereum and other cryptocurrencies remain in a regulatory gray area.

Gensler’s Stance on Cryptocurrency ETFs

SEC Chair Gary Gensler’s recent statements indicate that the approval of a spot Bitcoin ETF does not signify broader acceptance of cryptocurrency ETFs. Ark Invest and 21Shares have been actively involved in exploring cryptocurrency ETFs, offering funds based on Bitcoin and Ethereum futures strategies. They are also seeking approval for a spot Ethereum ETF.

Interest in XRP ETFs

There is significant interest in cryptocurrency ETFs beyond Bitcoin and Ethereum, including an XRP ETF. While there is currently no U.S.-based XRP ETF, 21Shares offers an XRP ETP in Switzerland, showcasing global demand for cryptocurrency investment products.

Market Dynamics and Regulatory Impact

Wood also mentioned the shift from gold to Bitcoin as an investment asset. This trend is supported by long-term holders who keep a significant portion of the circulating supply untouched for extended periods. The regulatory landscape will continue to shape the availability and variety of cryptocurrency investment products like ETFs, with the SEC’s decisions expected to have a significant impact.