correct me if im wrong but im pretty sure there’s no guarantee how many sats a share in these etfs are worth
on a dollar value, they’ll do fine but on a per sat basis investing into an etf in a bull day dilutes the per share sats value of everyone else in the fund
the reverse happens on bear days, afaict. here’s the lil scenario i walked through to convince myself of this dynamic.
100 shares, 100k sats. current price is $2/sat. $200k total NAV
ea share worth 1k sats
lets say the price moves up, to
$4/sat, $400k NAV, 100k sats
i buy 10 shares, $40k in, buys 10k sats
110 shares, $440k/110k sats
1k sats/share
market moves: day price is $5. $40k buys 8k sats
110 shares, 108k sats
989sats/share
market moves: day price is $2. $40k buys 20k sats
110 shares, 120k sats
1.09k sats/share
the big question is: is the price per share sold updated for the sats they acquire? or do they just accept money at price X, buy as many sats as they can at day-end and that’s what gets added to the fund?
niftynei /
npub1e0…k0txy
2024-01-12 07:21:29
Author Public Key
npub1e0z776cpe0gllgktjk54fuzv8pdfxmq6smsmh8xd7t8s7n474n9smk0txyPublished at
2024-01-12 07:21:29Event JSON
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"pubkey": "cbc5ef6b01cbd1ffa2cb95a954f04c385a936c1a86e1bb9ccdf2cf0f4ebeaccb",
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"content": "correct me if im wrong but im pretty sure there’s no guarantee how many sats a share in these etfs are worth\n\non a dollar value, they’ll do fine but on a per sat basis investing into an etf in a bull day dilutes the per share sats value of everyone else in the fund\n\nthe reverse happens on bear days, afaict. here’s the lil scenario i walked through to convince myself of this dynamic.\n\n100 shares, 100k sats. current price is $2/sat. $200k total NAV\nea share worth 1k sats\n\nlets say the price moves up, to\n$4/sat, $400k NAV, 100k sats\n\ni buy 10 shares, $40k in, buys 10k sats\n110 shares, $440k/110k sats\n1k sats/share\n\nmarket moves: day price is $5. $40k buys 8k sats\n110 shares, 108k sats\n989sats/share\n\nmarket moves: day price is $2. $40k buys 20k sats\n110 shares, 120k sats\n1.09k sats/share\n\nthe big question is: is the price per share sold updated for the sats they acquire? or do they just accept money at price X, buy as many sats as they can at day-end and that’s what gets added to the fund?",
"sig": "bb9dd52d6a666cfefbdc6bfc3065d46a35f2a0a8aaab454288390b7b5e5ee32a9e146e68a234c49f79495b2d88d6db5188ebb1beb0c5f52d200898e8e59502c5"
}