Comment by pczy

As far as I'm aware, the arbitrage mechanism works both ways. Continuing your analogy, authorized participants are able to trade the underlying turkeys for new tokens, or redeem the tokens for turkeys. When the price of a token is bidded up, its price becomes attractive relative to the turkeys. Authorized participants buy the underlying turkeys, create new tokens and then sell those tokens to take a risk free profit. This continues as long as there is a price mismatch, and ensures that ETF prices are in sync with the underlying assets.