Purpose Bitcoin CAD ETF Currency Hedged T.BTCC

BTC per share

[Evmino]

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?

[Mat1791]

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,

[Shadow1973]

I wouldn't worry about the .04 difference. It's when you start seeing those 10-40% premiums that I'd be worried (I didn't like QBTC and GBTC for that reason).  Regarding the other posts about selling before the weekend, good lord, I'd rather be long and get the potential for a price gap up - yes, you may get the big 30% draw down, but I'd be buying anyway in that case

[Evmino]

Thanks.  I thought that may be case.   Being open ended - clearly the additional purchase of the u/l asset would need to happen to balance everything.  Being a new ETF demand is high right now,.. so I gather this issue will level off. I've only skimmed the prospectus,.. so not sure if it's noted - but will be interesting to see the frequency at which addition BTC is

[Mat1791]

Shadow I believe EV was asking about the drop in BitCoin per unit not the premium/discount of the market price to NAV, which has stayed very tight considering the volume.   As you mentioned, the closed end funds would have had much higher premiums at this point like they did during the late Dec, early Jan BitCoin run. The great thing about all of these open ended ETFs that will be coming on

[Evmino]

Exactly,... not the premium/discount this trades at, but rather the dilution to BTC per Share.   But I believe the comments provided an answer to this.  Bc of the volatility in price of BTC - timing of purchases within the fund is key, making this quite a different flavour of ETF relative to a traditional one.