Cathie Wood, CIO and CEO of Ark Invest, told the Wall Street Journal on February 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 would be surprised if everything except bitcoin and ether were 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 considered securities are unlikely to gain corresponding ETFs. The Wall Street Journal noted that SEC Chairman Gary Gensler has historically described Bitcoin (BTC) as a commodity, while his position on Ethereum (ETH) is less clear.
Others have identified Ethereum as a commodity. Commodity Futures Trading Commission (CFTC) Chairman Rostin Benham made this claim specifically before a Senate Agriculture Hearing in March 2023. This doesn’t guarantee that the SEC will refrain from regulating ETH as a security measure, 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 wider adoption. In January, Gensler said the latest spot approvals for Bitcoin ETFs are “on the shelf” of Bitcoin and otherwise mean little about the SEC’s stance on other assets.
Ark offers several BTC and ETH ETFs
Ark, in partnership with 21Shares, was one of several companies to receive approval in January to offer a spot Bitcoin ETF, titled the ARK 21Shares Bitcoin ETF (ARKB).
Ark and 21Shares additionally offer four variants of Bitcoin futures strategies ETFs and Ethereum futures strategies ETFs – called ARKA, ARKC, ARKY and ARKZ.
Currently, Ark is one of many companies looking to launch a spot Ethereum ETF. She recently amended her application to this effect. It is likely that the SEC will choose to approve or reject the fund in May, after which it will rule on a similar proposal from VanEck.
In addition to these various funds, the possibility of an XRP ETF has generated significant interest among investors. While no XRP fund exists or has been proposed in the US, Ark’s partner, 21Shares, notably offers an XRP ETP in the Swiss market under the ticker AXRP.