Cryptocurrency Q&A Why do funds trade at a discount to NAV?

Why do funds trade at a discount to NAV?

Fri Jan 10 2025 | 7 answers 1088
I'm trying to understand why certain funds trade at a discount to their Net Asset Value (NAV). What are the reasons behind this phenomenon? Why do funds trade at a discount to NAV?

7 answers

Sun Jan 12 2025
A discount to NAV arises whenever the market trading price falls below the most recently calculated NAV.

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Sat Jan 11 2025
This situation often serves as an indicator of market sentiment.

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Sat Jan 11 2025
The NAV, or Net Asset Value, of a fund is a crucial metric.

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Sat Jan 11 2025
It represents the fund's value per unit, calculated at the end of each trading day.

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Sat Jan 11 2025
When a discount occurs, it typically reflects a bearish outlook on the investments held by the fund.

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