Ark Invest Founder Cathie Wood Refrains From Investing In the First Bitcoin ETF

Ark Invest founder and CEO Cathie Wood refrained from investing in ProShares’ Bitcoin Strategy Exchange Traded Fund (ETF) on the first day of trading on the exchange.

According to Business Insider, Wood refrained from investing as she is still closely watching the ETF.

“No, we have not invested. We are following ETFs very closely as there are some tax implications we would like to understand, more related to contango than normal backwardation,” she said.

A contango ETF is when the future price of a commodity is higher than the spot price. Backwardation is when the forward price of a futures contract is below the spot price in a downtrend.

In June of this year, Ark Investment Management, together with 21Shares, submitted an application to the US Securities and Exchange Commission (SEC) for permission to create an exchange-traded Bitcoin fund (ETF).

Ark Investment Management also received permission to invest in Canada’s bitcoin ETF under the Ark Next Generation ETF.

Today, Ark Invest also owns 8.3 million shares of the Grayscale Bitcoin Trust (GBTC), with a significant percentage of the company’s portfolio being Bitcoin and Ethereum.

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