🔥 Hard-core knowledge about the blockchain industry: ETF creations and redemptions
When the premium or discount is too large, authorized participants can arbitrage by creating or redeeming shares, helping pull the trading price back toward net asset value.
When tracking ETF fund flows, focus on cumulative trends over several weeks. Large inflows or outflows on a single day are often due to individual institutions rebalancing their portfolios.
Behind the shares of a Bitcoin spot ETF is $BTC actually held by the issuer.
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