ARK Invest CEO Cathie Wood suggested on May 29 that the US SEC's approval of spot Ethereum ETFs was influenced by political factors.

Speaking at Coindesk's Consensus 2024, Wood pointed to two developments that she believes shaped the SEC's shift in stance. First, she noted that the passage of FIT21 in the House of Representatives framed crypto as a significant election issue. Secondly, Wood highlighted former President Donald Trump's increasing affinity towards Bitcoin and crypto around the time of the ETF decisions, particularly his acceptance of campaign donations in crypto.

Wood observed that the SEC had previously shown no inclination to approve several pending spot ETH ETFs, stating unequivocally that approvals were not anticipated. She noted the absence of typical queries from the SEC prior to the sudden change in its position.

Following the SEC's May 23 approval of rule changes allowing the listing of eight spot ETH ETFs, including one co-offered by Ark and 21 Shares, Wood expressed cautious optimism about the potential approval of other crypto ETFs. She suggested that wirehouses might consider ETFs involving major cryptocurrencies like Solana, but she believed meme coin funds were unlikely to gain approval.

Turning to El Salvador, Wood praised President Nayib Bukele's Bitcoin policies after meeting with him. She suggested that Bukele's approach to Bitcoin, along with advancements in AI and other sectors, could potentially increase El Salvador's GDP substantially during his next term. Wood highlighted Bitcoin and AI as pivotal drivers of economic and technological progress, emphasizing Bukele's interest in integrating ARK Educate's curriculum on innovative technologies into the country's educational system.

Bukele's administration in El Salvador has been notable for its embrace of various crypto initiatives, including holding significant BTC reserves, promoting BTC mining, and offering citizenship to Bitcoin investors.