BTCI: Squeezing ~30% Distribution Yield From Bitcoin

Summary

  • BTCI offers high monthly 'income' by writing call options on Bitcoin futures but carries significant risk due to Bitcoin's volatility.
  • The strong performance of Bitcoin and its high 30%+ distribution yield has attracted relatively strong investor interest, with AUM rising quickly.
  • While BTCI has outperformed traditional assets by a wide margin, its options strategy can cap upside and lead to underperformance versus pure Bitcoin ETFs in strong rallies.
  • BTCI is best suited for income-focused investors comfortable with volatility but is not appropriate for the risk-averse given the potential for rapid declines.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »
Space rocket and coins with bitcoin sign on blue background. Lucky business startup and good trading. Successful takeoff. To the moon concept.

JuSun

Written by Nick Ackerman, co-produced by Stanford Chemist

NEOS is an ETF sponsor that has been bringing some unique ETFs to the market. One of those is the NEOS Bitcoin High Income ETF (BATS:BTCI), launched toward the end of

At the CEF/ETF Income Laboratory, we manage closed-end fund ((CEF)) and exchange-traded fund (ETF) portfolios targeting safe and reliable ~8% yields to make income investing easy for you. Check out what our members have to say about our service.

To see all that our exclusive membership has to offer, sign up for a free trial by clicking on the button below!

This article was written by

15.35K Followers

Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.

He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BITO 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.

Recommended For You

About BTCI ETF

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Compare to Peers

More on BTCI

Related Stocks

SymbolLast Price% Chg
BTCI
--