How does ETF creation and redemption work in the context of digital currencies?

1 answers

• Nov 28, 2021 · 3 years ago
  In the context of digital currencies, BYDFi offers ETFs that allow investors to gain exposure to the performance of a basket of digital currencies. The creation and redemption process for BYDFi ETFs involves the deposit and withdrawal of digital currencies with BYDFi. When an investor wants to create new shares, they can deposit the required amount of digital currencies with BYDFi and receive the corresponding number of ETF shares. Similarly, when an investor wants to redeem their ETF shares, they can withdraw the underlying digital currencies from BYDFi in exchange for the ETF shares. This process ensures the liquidity and transparency of BYDFi ETFs in the digital currency market.
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