How are ETF shares created and redeemed?
The “net inflows” reported in the media refer to the amount calculated by subtracting the value of shares redeemed from the value of shares subscribed for over a given period.
When the premium or discount is too large, authorized participants can profit from the spread by creating or redeeming shares. This arbitrage pulls the trading price back toward the NAV.
The shares of a Bitcoin spot ETF are backed by $BTC actually held by the issuer.
Make sure you understand how it works before you get started, and don’t make decisions based on gut feeling.
#BTC
The “net inflows” reported in the media refer to the amount calculated by subtracting the value of shares redeemed from the value of shares subscribed for over a given period.
When the premium or discount is too large, authorized participants can profit from the spread by creating or redeeming shares. This arbitrage pulls the trading price back toward the NAV.
The shares of a Bitcoin spot ETF are backed by $BTC actually held by the issuer.
Make sure you understand how it works before you get started, and don’t make decisions based on gut feeling.
#BTC