๐ฅ Hard-hitting blockchain knowledge: ETF creation and redemption
When the premium or discount is too large, authorized participants can profit from the spread through creations or redemptions. This arbitrage pulls the trading price back toward the net asset value.
Before trading an ETF, check its fees, trading volume, and typical premium or discount rangeโdonโt judge it by its name alone.
Each share of a Bitcoin spot ETF is backed by $BTC held in custody by the issuer.
If you found this useful, save it so you can look it up later.
When the premium or discount is too large, authorized participants can profit from the spread through creations or redemptions. This arbitrage pulls the trading price back toward the net asset value.
Before trading an ETF, check its fees, trading volume, and typical premium or discount rangeโdonโt judge it by its name alone.
Each share of a Bitcoin spot ETF is backed by $BTC held in custody by the issuer.
If you found this useful, save it so you can look it up later.