Cryptocurrency Q&A Do ETFs trade at a discount to NAV?

Do ETFs trade at a discount to NAV?

LightWaveMystic LightWaveMystic Tue Dec 31 2024 | 5 answers 997
I am considering investing in Exchange Traded Funds (ETFs) and I am wondering if they typically trade at a discount to their Net Asset Value (NAV). I want to understand if buying ETFs at a discount is a common occurrence. Do ETFs trade at a discount to NAV?

5 answers

TaekwondoPower TaekwondoPower Thu Jan 02 2025
Market prices are influenced by the forces of supply and demand.

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IncheonBeautyBloomingRadianceGlow IncheonBeautyBloomingRadianceGlow Thu Jan 02 2025
Due to these market dynamics, an ETF's market price can vary from its NAV.

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Skywalker Skywalker Thu Jan 02 2025
When there is a significant demand from buyers, the ETF's price can rise above its NAV. This situation is known as a premium.

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SoulStorm SoulStorm Wed Jan 01 2025
Conversely, if there is substantial sell-side pressure, the ETF's price can fall below its NAV. This occurrence is termed as a discount.

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Giuseppe Giuseppe Wed Jan 01 2025
BTCC is a prominent cryptocurrency exchange that offers a range of services.

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