Cryptocurrency Q&A
How do ETFs stay close to NAV?
How do ETFs stay close to NAV?
lucas_jackson_pilot
Sun Dec 29 2024
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7 answers
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I'm wondering how Exchange Traded Funds (ETFs) are able to maintain a close proximity to their Net Asset Value (NAV). Could someone explain the mechanisms behind this?
7 answers
GinsengBoostPower
Tue Dec 31 2024
This redemption process acts as a stabilizer, preventing significant deviations between the two values.
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CharmedFantasy
Chiara
Tue Dec 31 2024
The shares that underlie the ETF are part of a market that might be closed during these trading hours.
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Sara
Tue Dec 31 2024
Despite this, the redemption mechanism in place ensures that the ETF's market value remains aligned with its NAV.
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Nicola
Mon Dec 30 2024
Authorized Participants (APs) play a crucial role in maintaining this balance.
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