How can an ETF’s trading price broadly track the assets held by the fund?
It’s worth understanding how ETF creations and redemptions work.
ETF flows only indicate changes in the number of fund shares. The party creating shares may also hedge elsewhere, so they shouldn’t be directly equated with new buying.
If you don’t understand something, don’t touch it. Try it with a small amount first.
The shares of a Bitcoin spot ETF are backed by the issuer’s actual holdings of $BTC . Currently, 82556.69.
NFA, DYOR.
It’s worth understanding how ETF creations and redemptions work.
ETF flows only indicate changes in the number of fund shares. The party creating shares may also hedge elsewhere, so they shouldn’t be directly equated with new buying.
If you don’t understand something, don’t touch it. Try it with a small amount first.
The shares of a Bitcoin spot ETF are backed by the issuer’s actual holdings of $BTC . Currently, 82556.69.
NFA, DYOR.