The investor expressed concern about the tax consequences and decided to spend time understanding them.

Cathie, an American investor, and founder of Ark Invest has stated that she didn’t join the buying frenzy surrounding the ProShares Bitcoin Strategy eTF. Business Insider reported this after the fund’s debut at 19 Oct on the New York Stock Exchange.

The , trading volume of BITO on Tuesday was huge due to high demand.

Wood is the CEO of the Florida-based investment firm. She cited tax issues as the reason she didn’t jump on board on the ETF’s opening day.

Although she acknowledged that she didn’t put any money in the futures-based Bitcoin funds, she said that her investment team was closely studying the fund and that it could be a good investment for the future.

“There are some tax ramifications we’d like to understand more having to do with contango versus more normal backwardation,” she explained.

Contango refers to an ETF’s forward price that is significantly higher than its spot price. On the other hand, backwardation is when the future’s spot price is higher than the forward price.

Despite not being the first to buy ProShares’ BITO in its entirety, Ark Invest and Cathie Wood remain strongly pro-bitcoin. as well as predicting that the price of BTC will reach $500k, her company recently filed for a Bitcoin ETF, collaborating with 21Shares s to file an application with the US Securities and Exchanges Commission.

Elsewhere: The market could see its second and third Bitcoin Strategy Exchange Trade Funds (ETFs) this Friday and Monday. According to ETF analysts Eric Balchunas, Valkyrie’s BTF is set to go live on 22 October, while VanEck’s Bitcoin Strategy ETF (XBTF) set to make a debut on Monday.