Digital Asset Database Digital asset research & education
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Definition NAVnet asset value per share

Net Asset Value

The per-share value of everything a fund holds, minus what it owes, calculated at one set time each day.

Net asset value is computed by valuing the holdings at a benchmark time, subtracting accrued fees and liabilities, and dividing by shares outstanding. For digital-asset products the valuation usually comes from a published index that aggregates prices across several trading venues at a specified moment, and that methodology is disclosed in the prospectus. The term is borrowed from mutual funds, where investors actually transact at the daily value; for an exchange-traded product it does not mean the price you can buy or sell at, because the shares trade continuously at whatever the market pays. A further wrinkle unique to digital assets is that the underlying trades around the clock, so a single daily value freezes one instant of a market that never closes.

In practice

A product struck at a 4 p.m. New York benchmark will carry a value that is already stale by the time Asian trading hours have moved the underlying market overnight.

The common misunderstanding

That net asset value is the price you trade at, when on an exchange you trade at the market price for shares, which can sit above or below it.

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Related terms

Authorized Participant A large broker-dealer permitted to create and redeem fund shares directly with the fund, which…
Creation Unit The fixed block of fund shares that can be created or redeemed in a single transaction with the…
Exchange-Traded Product An umbrella term for investment vehicles whose shares trade on a stock exchange, including…
Premium and Discount to NAV The gap between what a listed product's shares trade at and the value of what it holds, expressed…
Spot ETF An exchange-listed product that holds the asset itself, so its share price tracks the asset's…
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