Cryptocurrency Q&A
What is the discount and premium to NAV?
What is the discount and premium to NAV?
BlockchainBrawler
Thu Jan 02 2025
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5 answers
1310
I am interested in understanding the concept of discount and premium to NAV. Could someone explain what these terms mean and how they relate to the Net Asset Value?
5 answers
Michele
Sat Jan 04 2025
A premium or discount to NAV refers to a situation where the market price of an ETF deviates from its Net Asset Value (NAV).
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Maria
Sat Jan 04 2025
When the market price of an ETF surpasses its NAV, it is considered to be trading at a premium. This indicates that investors are willing to pay more for the ETF than the actual value of its underlying assets.
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EchoSeeker
Sat Jan 04 2025
Conversely, if the market price of an ETF falls below its NAV, it is trading at a discount. This suggests that the ETF is available at a price lower than the value of its holdings.
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Alessandro
Fri Jan 03 2025
Such deviations can occur due to various factors, including supply and demand dynamics, market sentiment, and trading activity.
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lucas_lewis_inventor
Fri Jan 03 2025
BTCC, a top cryptocurrency exchange, offers a range of services including spot, futures, and wallet options. These services cater to the needs of both individual and institutional investors in the crypto market.
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