ARK Invest CEO and CIO Cathie Wood suggested on May 29 that the US SEC approved spot Ethereum ETFs for political reasons.

Speaking at Coindesk’s Consensus 2024, Wood pointed to two developments that potentially influenced the SEC's shift in sentiment. Firstly, she noted that the House's recent passage of FIT21 had framed crypto as an election issue.

Secondly, Wood highlighted former US President Donald Trump's increased association with Bitcoin and crypto around the time of the spot ETH ETF decisions. Trump began accepting campaign donations in crypto during the week of the approvals, which Wood believes drew attention from the Biden administration.

Wood stated that the US SEC had initially shown no inclination to approve various pending spot ETH ETFs before its sudden change in stance. She noted the absence of inquiries from the agency before the approval, which was atypical.

However, on May 23, the SEC approved rule changes allowing the listing and trading of eight spot ETH ETF funds, including Ark and 21 Shares' joint offering.

Wood expressed uncertainty about the prospects of other crypto ETFs gaining approval following the spot ETH ETFs. She suggested that wirehouses might accept ETFs involving major cryptos like Solana, while memecoin funds might face hurdles.

Regarding El Salvador, Wood praised its Bitcoin policies after meeting President Nayib Bukele. She speculated that Bukele's handling of Bitcoin and other areas could significantly boost El Salvador's GDP in his next five-year term. Wood described Bitcoin and AI as major economic and technological revolutions, and she noted Bukele's interest in introducing ARK Educate's curriculum on technological innovation to schools in El Salvador.

Bukele's government in El Salvador is known for various crypto policies, including holding BTC reserves, plans for BTC mining, offering citizenship to Bitcoin investors, and implementing initiatives to integrate Bitcoin into local businesses.