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222 sats \ 13 replies \ @justin_shocknet 9 Jul \ on: Are Some Whales Abandoning Self Custody? bitcoin
You can get a 5% APR margin loan, with only a 25% LTV, in pretty much any size with ETFs
That tool for speculative attack is a huge magnet for coins, there's nothing else even close
Can you please ELI5?
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AFAICT, a 5% APR (annual percentage rate) loan at 25% LTV (loan-to-value ratio) means:
- If you put up $100k of your bitcoin ETFs up as collateral, you can borrow up to $25k with an annual interest rate of 5%.
(Putting your ETFs up as collateral means that if you fail to repay your loan, they confiscate your ETF shares)
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You can borrow 75k
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That would make it 75% LTV, no?
5% APR 75% LTV is actually really good, almost like a mortgage.
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I meant maintenance ratio not LTV apparently
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Still, 5% APR 75% LTV is really good, and I'm surprised that those terms are available for bitcoin loans (even if they're based on the ETFs). How long is the repayment period?
Wow. Who is offering this?
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Robinhood for one, who I've honestly been pretty impressed with after moving a few things there there...
When researching rates Interactive Brokers was pretty close IIRC too.
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I need to login to Robinhood again
is it 5 or 6 percent?
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LTV for IBIT is 25%, the others seem to be 30%
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If you have room at the end of the year on your tax deductions moving some each year tax free is a good strategy
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