In a recent interview at Consensus 2024, ARK Invest CEO Cathie Wood revealed that cryptocurrency has emerged as a prominent election issue in the United States. Wood's comments shed light on the unexpected approval of key documents for proposed ether exchange-traded funds (ETFs), which caught many market participants off guard.

Wood expressed how initial expectations were pessimistic regarding the approval of the ether ETFs. She explained, "The read was it was not going to be approved. It was absolutely not going to be approved." The absence of queries from the U.S. Securities and Exchange Commission (SEC) before the approval further fueled these doubts, as typically, extensive questioning is part of the regulatory process.

Wood also highlighted two significant developments that influenced the sentiment around the ether ETFs. Firstly, the passing of the Financial Innovation and Technology for the 21st Century Act (FIT21) garnered bipartisan support in Congress, manifesting the potential for cryptocurrency to become a prominent issue in the upcoming election year. Secondly, the growing interest of former President Donald Trump in the crypto space, particularly expressing a willingness to accept crypto donations during his campaign, garnered attention from the administration.

Addressing the broader crypto landscape, Wood indicated that although a solana ETF could gain approval, meme coin-focused funds are unlikely to be endorsed by wirehouses, large brokerage firms, and investment advisory companies. These entities tend to favor established cryptocurrencies over the more speculative and volatile meme coins.

Wood emphasized ARK Invest's stance on bitcoin, portraying it as a public good. In January, ARK's 21Shares Bitcoin ETF was approved with a fee of 0.21%, which Wood stated would not generate significant profits. Instead, she advocated for wider accessibility by keeping the fee low. Additionally, Wood announced that a portion of ARK's private fund revenues would be assigned to support bitcoin developers, ensuring consistent backing irrespective of the profitability of the ETF.

Renowned for her bullish outlook on bitcoin, Wood reiterated her preference for the leading cryptocurrency over ether when asked to choose between the two. "Bitcoin, hands down. No question about it," she emphatically stated. Wood emphasized its global monetary system, technological advancements, and its establishment as a new asset class, underscoring its unparalleled position in the crypto space.

Wood's insights provide valuable perspective on the regulatory landscape surrounding cryptocurrencies and the evolving political dynamics that have thrust crypto into the spotlight. With the surprising approval of ether ETF documents and ongoing discussions surrounding bitcoin, the crypto market continues to captivate investors and analysts alike.