Cathie Wood On Why The SEC Approved The Ethereum ETF
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Cathie Wood of Ark Invest has come out with her opinion of why the SEC did an about face on the Ethereum ETF. It is important to keep in mind her firm is one of the ones that filed (and got approved) to offer the product.
Hence she knows the process and how it usually works.
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blockchain is here to stay
@taskmaster4450 The blockchain has been a great step forward, for example in Venezuela it has been used very frequently.
Wow, Blockchain is here to stay
To my observation, Gensler has been trying to shoehorn crypto regulation into existing laws. He often would kick back suggestions that he create clear guidelines back to Congress to write the laws to create the clear guidelines. They were waiting on him; he was waiting on them.
I think she's right. I think that the government is realizing that having a CFTC and an SEC is not working out in the new financial world. If BTC is a commodity, it should be regulated by the CFTC. But then again, an ETF is regulated by the SEC. They are stepping all over each other to figure out how things work with cryptos.
Other countries combine commodities and securities regulation under the same agency. Therefore, they are able to move faster in coming to a decision.
I think, ultimately the political pressure is because the country is ready to adopt crypto but Gensler has been diverting resources to litigate rather than to set a clear path for adoption. Adoption is happening faster than he can sue.
The US is notorious for this. The fact that the CFTC and SEC cant agree on Ethereum being a security is nothing new.
That is why the hedge fund industry is offshore. Something was legal under CFTC but illegal by the SEC.
Here insight is probably spot on. The reversal in ETF approval was stunning.
Something happened.
This is an interesting view on how the system works. The notion of Solana also getting its own ETFs is something I'm not too excited about. I consider BTC and ETH a step above the other tokens, so if Solana will quickly get one, it shows it is all just a popularity thing.
Yeah. Solona doesnt excite me either. I guess there might be a market for it.
As stated in the video, the next thing that might have appeal (the only that I can think of at this time) is a basket of crypto. That could sell.
But any other crypto passed ETH as an ETF, limited market in my view.
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STOPor to resume write a wordSTARTSummary:
The host discusses comments made by Cathie Wood of Ark Invest regarding the SEC's rapid approval of the Ethereum ETF. Wood believes the approval was driven by political factors, such as the pro-crypto stance of former President Trump and a bipartisan crypto bill passing the House. The host acknowledges Wood's insight, given her firm's involvement in the ETF process, but remains uncertain about the accuracy of her claims.
The host then shares his own views, expressing skepticism that Ethereum ETFs will see the same level of success as Bitcoin ETFs. He suggests a more diversified crypto ETF, with a basket of assets like Bitcoin, Ethereum, Solana, Cardano, and Litecoin, could be a more sensible approach. The host also notes the unusual speed of the Ethereum ETF approval, which typically involves extensive paperwork and review, according to Wood. While the host finds Wood's explanation plausible, he ultimately has no definitive answer on whether her assessment is correct.
Detailed Analysis:
The host begins by discussing comments made by Cathie Wood of Ark Invest regarding the SEC's rapid approval of the Ethereum ETF. Wood believes the approval was driven by political factors, specifically the pro-crypto stance of former President Donald Trump and a bipartisan crypto bill that had passed the House of Representatives.
The host acknowledges that Wood, whose firm filed for an Ethereum ETF, would have more insight into the process than he does. The host recounts Wood's explanation that Trump's support for crypto and the bipartisan crypto bill in the House suggest a shift in the political winds outside the Biden administration, which may have influenced the SEC's decision.
The host notes that he is unsure how this political dynamic will affect the approach of SEC Chairman Gary Gensler, who still works for the Biden administration. The host suggests that if the administration directs Gensler to take a certain action, he may have to comply, despite his previous consistency on crypto-related matters.
Shifting to another topic, the host discusses Wood's views on the potential for Solana and other altcoin ETFs. Wood is skeptical that institutions will invest in these as core holdings, and the host agrees, stating that he does not believe Ethereum ETFs will see the same level of success as Bitcoin ETFs. The host suggests that a more diversified crypto ETF, with a basket of assets like Bitcoin, Ethereum, Solana, Cardano, and Litecoin, could be a more interesting and sensible approach.
Returning to the Ethereum ETF approval, the host delves into Wood's explanation of the unusual speed of the process. According to Wood, the approval came before the typical extensive paperwork and review, which is why it will still take time for the ETF to start trading as the firms involved complete the necessary filings and adjustments.
The host finds Wood's explanation plausible, noting that Gensler's sudden flip-flop on the Ethereum ETF was a "headscratcher," given his previous consistency on crypto-related matters. The host acknowledges that the SEC's treatment of Ethereum as a potential security, in contrast to its stance on Bitcoin as a commodity, adds to the complexity of the situation.
Ultimately, the host expresses uncertainty about the accuracy of Wood's claims, but he recognizes the potential political factors at play and the implications for the crypto industry and Wall Street. The host concludes by inviting viewers to share their thoughts on the matter.