BITO: This Bitcoin-Linked ETF Offers Monthly Dividends

Damon Judd
7.58K Followers
(13min)

Summary

  • The ProShares Bitcoin ETF offers monthly dividends by investing in Bitcoin futures, appealing to income-focused investors seeking exposure to Bitcoin without direct ownership.
  • The ETF structure allows for liquidity and regular income, but total returns lag direct Bitcoin ownership and growth-oriented Bitcoin ETFs like GBTC and IBIT.
  • BITO's strategy is best suited for risk-tolerant investors who value monthly income over maximum price appreciation from Bitcoin's growth.
  • Investors prioritizing total return or direct Bitcoin exposure may prefer other ETFs, while those seeking income may find BITO's approach attractive despite inherent risks.
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For many investors like myself who are either retired or nearing retirement soon, a portfolio that generates passive income from dividends or distributions on a regular basis offers a potential source for an income stream to support or supplement their cashflow

This article was written by

7.58K Followers
Now retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon Runyon

Analyst’s Disclosure:I/we have a beneficial long position in the shares of YBTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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