Blockchain industry | How are ETF shares created and redeemed?
Each trading day, an ETF calculates the net asset value (NAV) per share based on the assets it holds. A trading price above NAV is called a premium, while a price below NAV is called a discount.
In-kind creation and redemption allows 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 reduce costs.
Behind the shares of a spot Bitcoin ETF, the issuer actually holds $BTC . Current price: 74958.
It's best to invest only money you can afford to lose without affecting your livelihood.
#BTC
This is not trading advice.
Each trading day, an ETF calculates the net asset value (NAV) per share based on the assets it holds. A trading price above NAV is called a premium, while a price below NAV is called a discount.
In-kind creation and redemption allows 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 reduce costs.
Behind the shares of a spot Bitcoin ETF, the issuer actually holds $BTC . Current price: 74958.
It's best to invest only money you can afford to lose without affecting your livelihood.
#BTC
This is not trading advice.