According to Business Insider, Cathie Wood, Ark Invest’s CEO and founder, did not invest in ProShares Bitcoin Strategy Exchange Traded Fund (or ETF) on its opening day.
Wood spoke about the debut of the ETF:
“No, we didn’t [invest]. This is something we are looking at […] There are tax implications that we would like to learn more about, especially in relation to contango and normal backwardation.
The ETF’s contango refers to the situation in which the future price for the commodity is higher that the spot price. Backwardation occurs when the spot price in an upward trend is higher than the forward price for the futures contract.
Cathie Wood, Ark Invest, partnered with 21 Shares in June to file for its Bitcoin ETF. Her experience in cryptocurrency investing is not unrivalled.
Ark Investment Management, one of her funds, was approved by the Ark Next Generation ETF to invest in Canada’s Bitcoin ETF. Ark Invest holds 8.3 million shares in Grayscale Bitcoin Trust, (GBTC), and Bitcoin and Ethereum make up a large portion of Ark Invest’s portfolio.
Ark Invest added Coinbase stock in spring to three of its ETFs Ark Innovation ETF(ARKK), Ark Next Generation Internet ETF [ARKW], and Ark Fintech Innovation ETF (“ARKF”)
Wood stated that she is searching for the next FAANG investment in order to assist her investors. FAANG is an acronym for stock market that describes the five largest American tech stocks, which include Apple, Facebook, Netflix, Google, Amazon and Apple. Jim Cramer first coined the FANG term in 2013.
The Bitcoin Strategy ETF had both the highest first-day natural volume ever for an ETF and the second highest overall volume on its first trading day.