Ark’s Cathie Wood says SEC probably will only approve BTC and ETH ETFs

Cathie Wood, CIO and CEO of Ark Invest, told the Wall Street Journal on Feb. 13 that she expects regulators to approve ETFs for very few cryptocurrencies.

During the Wall Street Journal’s “Take On the Week” podcast, Wood said:

“We’d be surprised to see anything but bitcoin and ether being approved by the [U.S. Securities and Exchange Commission].”

The full context for Wood’s statement will be heard in an upcoming episode. However, today’s report implies that cryptocurrencies which are considered securities are unlikely to obtain corresponding ETFs. The Wall Street Journal noted that SEC chair Gary Gensler has historically described Bitcoin (BTC) as a commodity, while his stance on Ethereum (ETH) is less clear.

Others have identified Ethereum as a commodity. Commodity Futures Trading Commission (CFTC) chair Rostin Benham notably made this claim before a Senate Agriculture Hearing in March 2023. This does not guarantee that the SEC will refrain from regulating ETH as a security, but it is a sign that regulators may treat Bitcoin and Ethereum similarly.

Another statement from Gary Gensler confirms that previous developments do not guarantee broader approvals. In January, Gensler said that the latest spot Bitcoin ETF approvals are “cabined” to Bitcoin and mean little else about the SEC’s stance on other assets.

Ark offers several BTC and ETH ETFs

Ark, in partnership with 21Shares, was one of several firms that gained approval to offer a spot Bitcoin ETF in January, titled the ARK 21Shares Bitcoin ETF (ARKB).

Ark and 21Shares additionally offer four variations on Bitcoin futures strategies ETFs and Ethereum futures strategies ETFs — labelled ARKA, ARKC, ARKY, and ARKZ.

Currently, Ark is one of many firms pursuing a spot Ethereum ETF. It recently amended its application to that end. It is likely that the SEC will choose to approve or reject the fund in May, at which time it is due to decide on a similar proposal from VanEck.

Beyond those various funds, the possibility of an XRP ETF has attracted significant interest among investors. Though no XRP fund exists or has been proposed in the U.S., Ark’s partner, 21Shares, notably offers an XRP ETP in the Swiss market under the ticker AXRP.

The post Ark’s Cathie Wood says SEC probably will only approve BTC and ETH ETFs appeared first on CryptoSlate.

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