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Indeed. It’s perfectly possible for an ETF to have a creation/redemption mechanism that doesn’t violate any SEC rules. For example, here’s state street’s expl
by seanhunter 4y ago
Indeed. It’s perfectly possible for an ETF to have a creation/redemption mechanism that doesn’t violate any SEC rules. For example, here’s state street’s explanation of how this works[1]
[1] https://www.ssga.com/au/en_gb/institutional/etfs/resources/education/how-etfs-are-created-and-redeemed https://www.ssga.com/au/en_gb/institutional/etfs/resources/e...
- roncesvalles 4y agoYes, normal ETFs create and destroy new shares on a daily basis. But my understanding is that GBTC for whatever reason isn't a normal ETF. It's a "grantor trust", which cannot be issuing and destroying units by the usual authorized participant mechanism to maintain price-NAV parity.