2024-03-12 07:18:00 ET
Summary
- Trading volumes for spot bitcoin ETFs have been the talk of the industry.
- ETF market makers are selling to new investors and need to create new shares to cover the short positions.
- For investors who define liquidity as the ability to enter and exit a position with minimal market impact, I would think metrics such as premium/discount to NAV would be far more relevant than average daily volume.
By David Mann, Head of ETF Product & Capital Markets, Franklin Templeton
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Measuring Bitcoin ETF Liquidity Through The 2024-25 Detroit Lions