Thoughts on EETH & EBTC Crypto ETF’s
Hi Team, Are the above 2 ETFs trading above or below their asset backing? Please advise how one can't calculate their fair value concerning the price of Ethereum & Bitcoin. Thanks & regards, Sidney
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Answer
Hi Sidney,
We’re not Crypto experts, however a standard ETF will not move much away from its NTA given a market maker is there buying and selling the underlying assets as an when flows happen in the ETF. It’s not a closed end fund like a listed investment company (LIC), an ETF is open ended so by definition, they won’t trade at a sustained premium or discount because that would create a low-risk arbitrage opportunity.
- As the chart shows the ETFs follow their respective underlying crypto currencies extremely closely.
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Global X21Shares Bitcoin ETF (EBTC) v Bitcoin ($US)
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Global X21Shares Bitcoin ETF (EBTC) v Bitcoin ($US)
