In a recent episode of WSJ’s Take On the Week podcast, Cathie Wood, the founder of ARK Investment Management, provided insights into the future of cryptocurrencies within the realm of exchange-traded funds (ETFs).
Wood conveyed her doubts regarding the Securities and Exchange Commission’s (SEC) inclination to approve spot exchange-traded funds containing cryptocurrencies beyond Bitcoin and Ethereum. She remarked, “We would be surprised to see anything other than Bitcoin and Ethereum approved by the SEC.”
This perspective from Wood coincided with Bitcoin’s surge past the $50,000 mark. Despite this, the SEC is anticipated to greenlight an Ethereum ETF in May. Nevertheless, the SEC’s backing of the Prometheum platform, which intends to offer Ethereum as a security, casts uncertainties on the process of endorsing ETH as a commodity.
As the cryptocurrency market eagerly awaits spot ETF applications encompassing altcoins like Solana, XRP, and Cardano, the SEC’s stance dictates that all cryptocurrencies, excluding Bitcoin and Ethereum, are classified as securities. Consequently, the likelihood of other assets securing a spot ETF is diminished.
