I was asked: How are ETF shares created and redeemed?
I usually answer like this: ETF management fees are charged annually and accrued daily from the fund’s assets, which is reflected in the NAV. Investors don’t pay them separately. When the premium or discount is too large, authorized participants can arbitrage by creating or redeeming shares, pushing the trading price back toward the NAV.
$BTC 83677.86（-0.41%）
If you have any friends who are new to this, feel free to send this to them.
#BTC
I usually answer like this: ETF management fees are charged annually and accrued daily from the fund’s assets, which is reflected in the NAV. Investors don’t pay them separately. When the premium or discount is too large, authorized participants can arbitrage by creating or redeeming shares, pushing the trading price back toward the NAV.
$BTC 83677.86（-0.41%）
If you have any friends who are new to this, feel free to send this to them.
#BTC