Blockchain industry knowledge: ETF creation and redemption
· ETF shares trade in two markets: regular investors buy and sell existing shares on exchanges, while authorized participants (APs) create and redeem shares 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. A trading price above NAV is called a premium; below NAV is called a discount.
The shares of a spot Bitcoin ETF represent $BTC actually held by the issuer.
· ETF shares trade in two markets: regular investors buy and sell existing shares on exchanges, while authorized participants (APs) create and redeem shares 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. A trading price above NAV is called a premium; below NAV is called a discount.
The shares of a spot Bitcoin ETF represent $BTC actually held by the issuer.