When ETFs like SPDR and iShares are created, where does the money come from to purchase the shares?

Question

When ETFs like SPDR and iShares are created, where does the money come from to purchase the shares?

In: Economics

Answer 1

These funds are just conceptual at their inception, and their shares only have actual value once they receive money and invest it in the component securities. Actual value, not notional value, since these ETFs are actually invested in the component securities, rather than being derivatives.