The founder and CEO of Ark Invest, Cathie Wood did not invest in the exchange-traded fund (ETF), ProShares’ Bitcoin Strategy, on the day of its debut, according to Business Insider.
Wood said of the ETF launch:
“No we didn’t [invertir]. We are studying this very carefully […] there are some fiscal ramifications that we would like to understand better that have to do with contango versus more normal backwardation. “
Contango refers to when the futures contract price of the raw material is higher than the spot price.Backwardation occurs when the forward price of the futures contract is lower than the spot price in a downward trend.
Last June, Ark Invest partnered with 21 Shares to introduce its own Bitcoin ETF. Wood is also no stranger to the equity market when it comes to investing in cryptocurrencies.
One of his funds, Ark Investment Management, was approved to invest in the Canadian Bitcoin ETF under the name Ark Next Generation ETF. Ark Invest owns 8.3 million Grayscale’s Bitcoin Trust (GBTC) shares, and Bitcoin and Ethereum they make up a good percentage of the firm’s portfolio.
In spring, Ark Invest also added Coinbase shares to three of its ETFs, Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW) and Ark Fintech Innovation ETF (ARKF).
Wood said he is looking for the next FAANG investment to help his investors. FAANG is a stock market acronym that describes the five biggest US tech stocks: Facebook, Amazon, Apple, Netflix, and Google. The term FAANG was initially coined by Jim Cramer in 2013.
The Bitcoin Strategy ETF had the highest natural volume first day ever for an ETF, and became the second highest volume ETF globally on its first day of trading.
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