Let’s talk about ETF creations and redemptions.
The “net inflows” reported by market websites refer to the amount represented by shares created over a period minus the amount represented by shares redeemed.
One easily overlooked point: in-kind creations and redemptions allow authorized participants to exchange Bitcoin directly for shares, so the fund doesn’t need to buy or sell Bitcoin on the market itself, which can reduce transaction costs.
When looking at ETF fund flows, focus on the cumulative trend over several weeks. Large inflows or outflows on a single day may be due to portfolio rebalancing by individual institutions.
Behind the shares of a spot Bitcoin ETF is $BTC , actually held by the issuer.
#BTC
The “net inflows” reported by market websites refer to the amount represented by shares created over a period minus the amount represented by shares redeemed.
One easily overlooked point: in-kind creations and redemptions allow authorized participants to exchange Bitcoin directly for shares, so the fund doesn’t need to buy or sell Bitcoin on the market itself, which can reduce transaction costs.
When looking at ETF fund flows, focus on the cumulative trend over several weeks. Large inflows or outflows on a single day may be due to portfolio rebalancing by individual institutions.
Behind the shares of a spot Bitcoin ETF is $BTC , actually held by the issuer.
#BTC