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 directly with the issuer in the primary market. Each trading day, an ETF calculates its net asset value (NAV) per share based on the assets it holds. When the trading price is above the NAV, it is called a premium; when it is below the NAV, it is called a discount.
In-kind subscriptions and redemptions allow authorized participants to exchange Bitcoin directly for shares, so the fund does not need to buy or sell Bitcoin on the market itself, reducing costs.
The shares of a spot Bitcoin ETF are backed by Bitcoin actually held by the issuer: $BTC . Current price: 81704.55.
For reference only. Invest at your own risk.
ETF shares trade in two markets: ordinary investors buy and sell existing shares on exchanges, while authorized participants (APs) subscribe for and redeem shares directly with the issuer in the primary market. Each trading day, an ETF calculates its net asset value (NAV) per share based on the assets it holds. When the trading price is above the NAV, it is called a premium; when it is below the NAV, it is called a discount.
In-kind subscriptions and redemptions allow authorized participants to exchange Bitcoin directly for shares, so the fund does not need to buy or sell Bitcoin on the market itself, reducing costs.
The shares of a spot Bitcoin ETF are backed by Bitcoin actually held by the issuer: $BTC . Current price: 81704.55.
For reference only. Invest at your own risk.