The high profile investor has not achieved his level of success without being diligent. At the Milken Institute’s global conference earlier this week, Wood was asked about the ProShares Bitcoin Futures ETF and expressed hesitation because there are “certain tax ramifications that we [ARK] would like to understand better. ”

Tax implications can be affected by “contango versus normal offset,” financial terms that refer to the movement of prices over time on a forward curve.

The SEC has not approved an ETF indexed to the price of Bitcoin. Instead, investors are allowed to buy stocks linked to a set of contracts to buy Bitcoin in the future, which is more complicated than a regular ETF.

When buying a Bitcoin futures ETF, there are external factors that can cause the stock price to pivot relative to the asset. Essentially, the divergence could lead to significant price spread and arbitrage. This concerns the SEC, and average investors may want to avoid investing in a BTC futures ETF.

However, despite these concerns, the SEC approving an ETF based on BTC futures turned out to be a big win for cryptonatives as prices started to rise and the price of Bitcoin hit a new high of 66,930. $ 39.

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