re: How much should I invest in BTC today?

quote:

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'm assuming any FBTC bought prior to 8/1 one get that charge...maybe? And anyone able to explain a scenario of how this will be charged? Ie...if I bought 10 shares of FBTC after 8/1...how does that 25 basis points get charged?

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Just like any other ETF, Fidelity will just deduct this seamlessly from the share price. Until August 1st there is no fee. After August 1st, the fee starts being charged.

I think they deduct the fees daily. This is such a tiny fee that you won't even notice it.

If you only buy 10 shares of FBTC at today's instant price check of $55.79, you own $557.90 of FBTC. Assume that price remains constant for a year after August 1, 2024. By August 1, 2025 you will have paid $557.90 x 0.25% = $557.90 x .0025 =$1.39475 = $1.40 in fees.

So for an average FBTC price of 10 shares = $557.90 held for 12 months, once they start charging fees, you will pay $1.40 in fees. If they do this daily, your fees will be $1.39475/ 365 = $0.00382123287671 of fees per day.

For every $10,000 of FBTC that you own for a year, you would pay $25 for each 10,000.

If you own $10,000 of FBTC and it's price rises in a straight line to $20,000 in 12 months, then your average shares held price is $15,000. So your annual fees add up to $25 x 1.5 = $37.50. You wouldn't even notice the fees since it comes out of the share price.