How is the net traffic data of ETF obtained? Is BTC on the blockchain? I saw some friends in the comment section who have questions about the ETF process. A few days ago, some friends also talked about how BTC in ETFs cannot be listed on the chain. It's a good opportunity to clarify these two issues together. Let's give an example to illustrate Assuming that IBIT Trust holds 600000 BTC ($63000) and has issued 6.6 billion shares, then NAV=600000 × 63000 ÷ 660000000 ≈ $5.73. Each IBIT corresponds to approximately 0.0000909 BTC, worth $5.73. Assuming there are too many sell orders on the exchange one day and buying orders cannot be sustained, although the NAV is $5.73, the market price has been hit to $5.67, resulting in a discount of about 1%. At this point, it is a risk-free arbitrage opportunity for AP. The same thing is sold for $5.67 in the secondary market, but the BTC behind it is worth $5.73. So AP would do this: one ⃣ Bought 1 million copies of IBIT for $567w on the exchange; two ⃣ Hand over these 1 million units to BlackRock and redeem them at NAV. three ⃣ Cancel the trust shares and transfer the corresponding 90.9 BTC from the trust assets. In cash mode, the trust sells these BTC and pays the cash to the AP; in physical mode, it directly gives 90.9 BTC to the AP The cost is $567 million, and after receiving $573 million, the net profit is the remaining amount after deducting the cost. At the same time, AP buying ETFs in the secondary market will cause the market price to converge towards NAV, and when the arbitrage window closes, AP will stop trading. The real asset change throughout the entire process was that the trust lost 90.9 BTC and 1 million issued shares. And the 'net traffic' data is based on this, which is the net increase or decrease in market share for the day, then converted into BTC or US dollars. The opposite is also true: when the market buying surges and generates a premium, the AP sells ETF shares in the secondary market and purchases new shares from the issuer based on NAV. The trust receives the money and goes to buy BTC; Share increase is recorded as net inflow. Tracing back to the source of 'net inflow/outflow', it is actually the buying/selling pressure in the secondary market that no one is willing to accept. We should not only focus on net traffic, but also take into account trading volume. The information behind "high transactions+high outflows" and "low transactions+high outflows" is different. In addition, net redemptions/subscriptions on the same day will be called or collected between the cold wallet of the custodial account and the trading account of Coinbase. The inflow and outflow of custodial accounts are essentially on chain mirrors of net traffic data. So, all ETF net traffic data is on chain, only secondary share transfers are not on chain.