Ark Invest CIO and CEO Cathie Wood 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 anything other than Bitcoin and Ether were approved by the EU [U.S. Securities and Exchange Commission].”
You'll hear the full context of Wood's statement in an upcoming episode. However, today's report suggests that cryptocurrencies that are considered securities are unlikely to receive equivalent ETFs. The Wall Street Journal noted that SEC Chairman Gary Gensler has described Bitcoin (BTC) as a commodity in the past, while his stance on Ethereum (ETH) is less clear.
Others have identified Ethereum as a commodity. Commodity Futures Trading Commission (CFTC) Chairman Rostin Benham made this claim before one in particular 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 the recent spot approvals for Bitcoin ETFs were “tied to Bitcoin” and said little else about the SEC’s stance on other assets.
Ark offers several BTC and ETH ETFs
Ark, in collaboration with 21Shares, was one of several companies that received approval in January to offer a spot Bitcoin ETF called ARK 21Shares Bitcoin ETF (ARKB).
Ark and 21Shares also offer four variants of Bitcoin futures ETFs and Ethereum futures ETFs – called ARKA, ARKC, ARKY and ARKZ.
Currently, Ark is one of many companies pursuing a spot ETF for Ethereum. To this end, it recently modified its application. It is likely that the SEC will decide whether to approve or reject the fund in May. At that time, she is expected to decide on a similar proposal from VanEck.
Beyond these various funds, the possibility of an XRP ETF has generated a lot of interest among investors. Notably, although no XRP fund exists or has been proposed in the United States, Ark's partner 21Shares is offering an XRP ETP on the Swiss market under the ticker symbol AXRP.
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