RE:BTC per shareEvmino wrote: Hey - can someone explain why in Purpose Investments website for BTCC where it shows the current valuation,... why BTC per Share is dropping ever so slightly?
is there a Dilutive effect of more investors coming into this ETF watering down the NAV? What am I missing here?
EV, I'll take a stab at this,
The fund is open, it uses a creation fund to add or subtract units in order to try and maintain a market value as close to NAV as possible.
In times of great demand, units are continually created for the purposes above, and the funds cash position will grow as a result. Eventually this cash will be used to buy more holdings (BitCoin).
However, day to day, the BitCoin per unit will fluctuate slightly based on these changing positions in both cash, holdings and outstanding units.
I think that's close...
GL