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Arbitrage is only possible when there is a low-friction way to redeem an asset for the raw good it's backed by. In the case of traded funds like this, they can
by everfree 10y ago
Arbitrage is only possible when there is a low-friction way to redeem an asset for the raw good it's backed by. In the case of traded funds like this, they can only be redeemed in large batches, which means that there should be no more arbitrage opportunity than what's already possible now.