I was asked: How are ETF shares created and redeemed?
My answer: When market websites talk about ETF “net inflows,” they mean the amount corresponding to the shares created during a given period minus the shares redeemed. In-kind creations and redemptions allow authorized participants to exchange Bitcoin directly for shares, so the fund doesn’t have to buy or sell Bitcoin on the market itself, which can lower costs.
$BTC 81478.09（-1.79%）
What’s your take on this? Join the conversation in the comments.
My answer: When market websites talk about ETF “net inflows,” they mean the amount corresponding to the shares created during a given period minus the shares redeemed. In-kind creations and redemptions allow authorized participants to exchange Bitcoin directly for shares, so the fund doesn’t have to buy or sell Bitcoin on the market itself, which can lower costs.
$BTC 81478.09（-1.79%）
What’s your take on this? Join the conversation in the comments.