RE:RE:Top secretThat stuff's above my pay grade. Just quoting what I read.
Interestingly, the pegged thing applies to ETFs big time but nobody seems to care much.
EG. some gold ETFs are fully backed by physical gold while some are merely pegged.
Same with crypto.
I don't quite understand where the money goes when someone buys a gold or crypto ETF that is merely pegged.
If the ETF is backed, the purchase price of the ETF goes into buying the underlying commodity.
Hence, purchasing commodity backed ETFs contributes to price increases in the underlying commodity.
Not true if pegged. Where does that money go?