2024-05-08 09:35:00 ET
Summary
- When I began my career over 20 years ago, the premium/discount conversations were focused on ETFs that hold US equities.
- Those premium/discount percentages were typically low since both the ETF and the stocks within the ETF closed at the exact same time.
- The spot bitcoin ETFs have traded as I would have expected and any elevated premiums/discounts are due to how NAVs are calculated, not any inherent issues with the structure of these funds.
By David Mann, Head of ETF Product & Capital Markets, Franklin Templeton
The Bitcoin ETFs ("Bitcoin ETFs" hereafter) registered under the Securities Act of 1933, which have been discussed, are not an investment company registered under the Investment Company Act of 1940 (1940 Act) and therefore are not subject to the same regulatory requirements as mutual funds or ETFs registered under the 1940 Act. The Bitcoin ETFs are not a commodity pool for purposes of the Commodity Exchange Act (CEA) and accordingly are not subject to the regulatory protections afforded by the CEA. ...
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For further details see:
Spot Bitcoin ETF Premiums/Discounts - Time To Check VAR