Company: DEFI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001999371-25-006264
Chunk: 27

Company: Tidal Commodities Trust I
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 27
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, money market funds
and/or investments in commercial paper; in the Fund’s current policy, only up to 5% of the Fund’s assets may be invested
in CME-traded bitcoin futures contracts and in cash and cash equivalents. The Fund seeks to earn interest and other income in
investments that may include, but are not limited to, short-term Treasury Securities, demand deposits, money market funds and
investments in commercial paper. These interest rate levels may be lower or higher than the projected interest rates stated in
the prospectuses and thus will impact your breakeven point.

The
decrease in management fee paid to the Sponsor for the three months ended March 31, 2025, compared to the three months ended March
31, 2024, is a result of lower Fund average net assets overall, which was also net of the Sponsor lowering the management fee
from 0.90% to 0.25% per annum of the daily NAV of the Fund effective February 10, 2025. In the three months ended March 31, 2025,
Other than the management fee to the Sponsor, the Fund did not incur total gross fees and other expenses excluding management
fees, brokerage commissions and trading fees; unlike the three months ended March 31, 2024, where the Fund incurred brokerage
commissions and trading fees. Brokerage commissions are recognized on a per-trade basis to each futures contract’s or bitcoin
share’s cost basis. Trading fees for the Fund are recorded in the statement of operations as broker expenses. The actual
amount of trading fees to be incurred will vary based upon the trading frequency of the Fund.

For
the three months ended March 31, 2024, most of the expenses incurred by the Predecessor Fund were associated with the management
fee and day-to-day operation of the Fund and the necessary functions related to regulatory compliance. Those were generally based
on contracts, which extend for some period of time and up to one year, or commitments regardless of the level of assets under
management. The Sponsor has not elected to waive management fees or other expenses. These factors also explain the decrease in
total gross fees and other expenses excluding management fees, as well as the decrease in total gross expense ratio for the three
months ended March 31, 2025.

The
decrease in total brokerage commissions for the three months ended March 31, 2025, compared to the nine months ended March 31,
2024