Net Asset Value (NAV) is the per-unit value of a fund, trust, or portfolio, calculated by taking the total value of its underlying assets, subtracting any liabilities, and dividing by the number of outstanding shares or units. In crypto, NAV is most commonly discussed in relation to crypto ETFs, trusts, and closed-end funds that hold Bitcoin, Ethereum, or baskets of digital assets on behalf of investors.
How NAV works: the fund calculates its NAV once per trading day, or sometimes in real time, by marking its crypto holdings to the current market price and dividing by shares outstanding. Key concepts: Underlying assets — the actual cryptocurrency held in custody backing each share; Outstanding shares — the total number of fund units currently issued to investors; Mark-to-market — valuing holdings at current market price rather than purchase price. For open-ended, redeemable funds, shares can typically be created or redeemed near NAV. For closed-end trusts without a redemption mechanism, the market price can drift meaningfully away from NAV — trading at a premium or discount.
Example: A Bitcoin trust holds $500 million in BTC against 50 million outstanding shares, giving a NAV of $10 per share. If the trust’s shares trade on the open market at $9.20, they are trading at an 8% discount to NAV — a classic setup crypto investors watch closely.
Learn more: Investopedia — Net Asset Value (NAV) Definition
