According to Bloomberg, a spot-Bitcoin exchange-traded fund (ETF) could trade at a meaningful premium to its net asset value (NAV). The head of ETF trading at market-maker GTS stated in an interview with Bloomberg TV that if approved, the fund could see an 8% premium to the value of its underlying holdings. This added level of complexity may make it difficult to keep the ETF's price in line with the underlying Bitcoin, resulting in a significant premium to NAV.
The comments come as a deadline for the approval of a Bitcoin ETF approaches. The GTS executive also expects investors to add at least $2 billion to spot Bitcoin ETFs within the first 30 days of trading if approved. For the full year, he sees $10 billion to $20 billion in the funds. He cautioned that while the approval would be celebrated, the details of the ETF's operation would need to be carefully considered.
