In Brief:
- The founder and CEO of Ark Invest did not invest in the ProShares Bitcoin Strategy Exchange Traded Fund.
- She cited tax implications as the reason for withholding investment
As per the new report, the founder and CEO of Ark Invest did not invest in the ProShares Bitcoin Strategy Exchange Traded Fund (ETF) on its first day of trading.
“No, we did not [invest]. We’re looking at this very carefully […] there are some tax ramifications we’d like to understand more having to do with contango versus more normal backwardation,” Cathie Wood had this to say about the ETF’s debut.
The ETF is said to be in contango when the future price of a commodity is greater than the current price. Backwardation occurs in a downward trend when the forward price of a futures contract is lower than the spot price.
Wood is seeking the next FAANG investment that will benefit her shareholders. The acronym FAANG refers to the five largest American technology companies: Facebook, Amazon, Apple, Netflix, and Google.
Ark Invest also intends to enter the Bitcoin futures ETF market. One of her funds, Ark Investment Management, has been approved to invest in Canada’s Bitcoin ETF, the Ark Next Generation ETF.
Nonetheless, the Proshares Bitcoin Strategy ETF was the second-highest ETF launch ever as more than $1 billion worth of shares traded on its first day.
