Cryptocurrency Q&A
How does IBIT charge fees?
How does IBIT charge fees?
Daniele
Wed Sep 04 2024
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7 answers
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Could you please explain the fee structure that IBIT employs? Are there any upfront charges or are fees deducted on a transaction basis? Are there any additional costs associated with withdrawing funds or maintaining an account? I'm interested in understanding the overall cost of using IBIT's services and how these fees might impact my investment strategy.
7 answers
BonsaiLife
Fri Sep 06 2024
This means that all investors, regardless of when they invested or how much they invested, will incur the same Sponsor's Fee. This approach helps to ensure that the Trust is managed in the best interests of all investors, rather than just a select few.
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Arianna
Fri Sep 06 2024
For assets up to $5.0 billion, the Sponsor's Fee is not specified in the provided information. However, it's reasonable to assume that there is a base rate that applies to this portion of the Trust's assets.
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Stefano
Fri Sep 06 2024
When the Trust's assets exceed $5.0 billion, a higher fee rate comes into effect for the assets that exceed this threshold. Specifically, the Sponsor's Fee charged on assets over $5.0 billion is 0.25%.
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emma_lewis_pilot
Fri Sep 06 2024
This tiered fee structure ensures that the Sponsor is incentivized to grow the Trust's assets, as the higher fee rate on assets over $5.0 billion provides additional revenue.
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SakuraBloom
Fri Sep 06 2024
At the same time, the fee structure is designed to be fair to all investors. Rather than charging some investors a higher fee than others, the Sponsor's Fee is calculated as a weighted average of the fee rates applicable to different portions of the Trust's assets.
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