Updated on:12/14/2025 04:31 PM 
Renowned investment strategist and ARK Invest CEO Cathie Wood has revealed what she believes were the political motivations behind the recent approval of spot Ethereum ETFs in the United States. During her appearance at Coindesk's Consensus 2024 conference on May 29, Wood suggested that regulatory decisions were influenced by political considerations rather than market fundamentals.
According to Wood, two significant developments potentially swayed the Securities and Exchange Commission's (SEC) position on digital asset investments. The first was the House of Representatives' passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act, which effectively positioned cryptocurrency as a key electoral issue in the upcoming political landscape.
The second factor, Wood explained, was the evolving relationship between former President Donald Trump and the cryptocurrency sector. She noted Trump's increased acceptance of Bitcoin and crypto assets, particularly his decision to begin accepting campaign donations in digital currencies around the time of the ETH ETF approvals. This shift, Wood believes, may have prompted the Biden administration to reconsider its stance on cryptocurrency regulation.
Wood emphasized that the SEC had been "absolutely not" inclined to approve various pending spot Ethereum ETF applications prior to this unexpected policy shift. The regulatory process typically involves extensive scrutiny and follow-up questions from the agency, which did not occur in this case. Instead, on May 23, the SEC approved rule changes permitting the listing and trading of eight spot ETH ETF funds, including the joint offering from Ark Invest and 21 Shares.
Looking ahead, Wood expressed mixed sentiments about the prospects for additional cryptocurrency ETF approvals. While she anticipated that major financial institutions might embrace ETFs involving established cryptocurrencies like Solana, she remained skeptical about the potential approval of meme coin funds, citing regulatory concerns and market volatility.
In a separate development, Wood recently praised El Salvador's progressive approach to cryptocurrency adoption following her meeting with President Nayib Bukele. The investment visionary believes that Bukele's policies regarding Bitcoin, artificial intelligence, and emerging technologies could potentially scale El Salvador's GDP tenfold during his next five-year term.
Wood described Bitcoin and AI as "two of the biggest economic and technology revolutions in history," highlighting their transformative potential for developing economies. She noted that El Salvador's educational curriculum now incorporates blockchain technology, artificial intelligence, robotics, energy storage, and multinomics—preparing the nation's workforce for the digital economy.
President Bukele has implemented several groundbreaking cryptocurrency initiatives, including accumulating at least 5,700 BTC in government reserves, developing Bitcoin mining operations to generate national revenue, and creating special citizenship incentives for cryptocurrency investors. These measures have positioned El Salvador as a global leader in cryptocurrency adoption and regulatory innovation.
