Blockchain Industry | How Are ETF Shares Created and Redeemed?
ETF shares trade in two markets: ordinary investors buy and sell existing shares on exchanges, while authorized participants (APs) subscribe for and redeem shares with the issuer in the primary market.
When the premium or discount is too large, APs can profit from the price difference by subscribing or redeeming shares. This arbitrage can push the trading price back toward the net asset value.
The shares of a spot Bitcoin ETF represent the $BTC actually held by the issuer. Current price: 83141.25.
It's best to invest only money you can afford to lose without affecting your livelihood.
#BTC
How you choose to proceed is up to you; I'm just sharing this.
ETF shares trade in two markets: ordinary investors buy and sell existing shares on exchanges, while authorized participants (APs) subscribe for and redeem shares with the issuer in the primary market.
When the premium or discount is too large, APs can profit from the price difference by subscribing or redeeming shares. This arbitrage can push the trading price back toward the net asset value.
The shares of a spot Bitcoin ETF represent the $BTC actually held by the issuer. Current price: 83141.25.
It's best to invest only money you can afford to lose without affecting your livelihood.
#BTC
How you choose to proceed is up to you; I'm just sharing this.