When I buy a ETF like ETHA, how can I know whether the price that I am paying is at a premium or discount relative to the underlying ETH price at that point in time?
Eg. ETH price dropped by 6% last week whereas on the same day ETHA dropped by 18%.
Same applies for IBIT ETF and underlying BTC value.
To determine whether you’re paying a premium or discount on an ETF like ETHA relative to ETH, you must monitor its intraday net asset value (iNAV) versus its market price.
iNAV is essentially a real-time estimate of an ETF’s true value based on the current prices of its underlying assets.
Think of it as a “snapshot” of what the ETF should be worth at any given moment during the trading day. It’s calculated by taking the current market prices of all the assets the ETF holds, subtracting any liabilities, and then dividing by the total number of shares outstanding.
If the ETF is trading below its iNAV (a discount), it may suggest a buying opportunity because you’re paying less than the underlying value. Conversely, if it’s trading above its iNAV (a premium), you might be paying extra relative to the actual asset value.
Use real-time data platforms or the ETF provider’s dashboard to monitor ETHA’s iNAV alongside ETH’s current price for accurate comparison
Check out NAV for ETHA here: iShares Ethereum Trust ETF | ETHA
You will get its most updated NAV from their own website itself. Other services might be slower.
@Shankar_Vector_172 . You can compare both graphs on top of each other to see for buying/selling opportunities. Can easily do this on yahoo or other platforms.
Not sure I understood you here. Can you please let me know how to do this ?
Very helpful. Thanks for the detailed response Yash.
Or simply use this link for Comparison:
Yahoo Finance ETH vs ETHA comparison
Got it Aryan. Thanks a ton.
