Wood said the proposed ether ETFs weren't approved in a regular way.

-Key documents for the proposed ether exchange-traded funds (ETF) were approved suddenly and unexpectedly.
-The surprise approval and passage of FIT21 in the House indicate how crypto has become an election issue.
-Ark will not make money from its bitcoin ETF.

AUSTIN, TX — ARK Invest CEO Cathie Wood said crypto is now a U.S. election issue, which is why key documents for the proposed ether exchange-traded funds (ETF) were approved suddenly and unexpectedly.

"The read was it was not going to be approved. It was absolutely not going to be approved," Wood said on stage at Consensus 2024 in an interview with Peter McCormack, host of the What Bitcoin Did podcast. "If it were to have been approved the regular way, we would have been getting questions from the SEC. No one was getting questions from the SEC beforehand."

Wood, who is also the firm's chief investment officer, said sentiment evolved around the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House. The act passed last week with support from both sides of the aisle, making it clear that this could be an election-year issue.

"The other thing that happened was former President Trump had become much more cozy with bitcoin and crypto generally. That week, he said he would accept campaign donations in crypto," which got attention from the administration, Wood said.

Wood also said that while a solana ETF could be approved, meme coin-focused funds are unlikely because wirehouses – the large brokerage firms and investment advisory companies – would not accept more than "the majors."