Ark Invest founder Cathie Wood passed on buying the first Bitcoin Futures ETF

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Cathie Wood, the founder of Ark Invest, passed on investing in the first Bitcoin Futures ETF because she didn’t think it was a good idea. “I don’t see how this is going to be a success,” said Wood at the time.

Cathie Wood is the founder of Ark Invest, an investment firm that has been around since 1994. On September 17th, she passed on buying the first Bitcoin Futures ETF because it was too risky.

Ark Invest founder Cathie Wood passed on buying the first Bitcoin Futures ETF

 

According to Business Insider, Ark Invest founder and CEO Cathie Wood did not invest in the ProShares Bitcoin Strategy Exchange Traded Fund, or ETF, on its first day of trading. 

Wood had this to say regarding the ETF’s debut:

“We did not [invest],” says the narrator. We’re taking a close look at this […] there are certain tax implications we’d want to learn more about in terms of contango versus more traditional backwardation.”

When the future price of a commodity is greater than the current price, the ETF is said to be in contango. In a negative trend, backwardation occurs when the forward price of a futures contract is lower than the spot price.

Cathie Wood’s Ark Invest teamed up with 21 Shares to register for its own Bitcoin ETF in June. When it comes to investing in cryptocurrencies, she is also no stranger to the stock market.

Ark Investment Management, one of her funds, has been authorized to invest in Canada’s Bitcoin ETF, the Ark Next Generation ETF. Grayscale Bitcoin Trust (GBTC) is owned by Ark Invest, which holds 8.3 million shares. Bitcoin and Ethereum account for a significant portion of Ark Invest’s portfolio.

Ark Invest also added Coinbase shares to three of its ETFs in the spring: the Ark Innovation ETF (ARKK), the Ark Next Generation Internet ETF (ARKW), and the Ark Fintech Innovation ETF (ARKF) (ARKF).

Wood said that she is on the lookout for the next FAANG investment that will benefit her investors. FAANG is an abbreviation for the five largest American technology companies: Facebook, Amazon, Apple, Netflix, and Google. Jim Cramer was the first to create the phrase FANG in 2013.

On its first day of trading, the Bitcoin Strategy ETF recorded the greatest natural volume of any ETF ever, as well as the second highest total volume of any ETF.

Cathie Wood, the founder of Ark Invest, passed on buying the first Bitcoin Futures ETF. The reason for her decision was that there were too many unknowns surrounding the product. Reference: cathie woods net worth.

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Emilia James
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