Why does an ETF’s trading price generally stay close to the value of the assets it holds?
First, the definition: ETF management fees are charged annually and deducted from the fund’s assets each day, so they’re reflected in the net asset value. Investors aren’t charged separately.
Here’s why: ETF flows only show changes in the number of fund shares. Investors creating shares may also hedge in other markets, so these flows shouldn’t be viewed directly as new buying.
The shares of a spot Bitcoin ETF represent $BTC actually held in custody by the issuer.
Understand how it works before taking action. Don’t make decisions on impulse.
#BTC
First, the definition: ETF management fees are charged annually and deducted from the fund’s assets each day, so they’re reflected in the net asset value. Investors aren’t charged separately.
Here’s why: ETF flows only show changes in the number of fund shares. Investors creating shares may also hedge in other markets, so these flows shouldn’t be viewed directly as new buying.
The shares of a spot Bitcoin ETF represent $BTC actually held in custody by the issuer.
Understand how it works before taking action. Don’t make decisions on impulse.
#BTC