BTCI offers a high 27.8% yield using a covered call strategy on Bitcoin, appealing to income-focused investors. The fund's approach limits the upside during Bitcoin rallies, but this trade-off is typical for covered call ETFs and accepted by yield-seeking investors. My focus is always total return, and despite a bad start in November, BTCI has delivered impressive results.
U.S.-listed actively managed ETFs gathered nearly $300 billion in 2024, representing 26% share of the industry's record cash haul. This was more than double the inflows for the prior year and a nearly four-fold increase from three years earlier.
BTCI generates cash flow through a synthetic options strategy, with an expense ratio of 0.98%. Negative aspects: It has low AUM, is illiquid, and has a high bid-ask spread. Still better than its competitor YBIT, which in my opinion is a high-dividend trap (above 90%).
Bitcoin (BTC) prices rose over the weekend on the announcement of a U.S. crypto reserve, though no further details were provided by the current administration. Heightened volatility in bitcoin could prove beneficial for strategies like the NEOS Bitcoin High Income ETF (BTCI), as evidenced by the fund's distribution rate.
Under an administration actively involved in the crypto economy, bitcoin increasingly captures the curiosity and interest of investors. For those looking to bitcoin for income, the NEOS Bitcoin High Income ETF (BTCI) continues to generate significant distribution rates nearly four months since launch.
BTCI provides an investment opportunity to own Bitcoin, generate high, tax-efficient monthly income, and capture potential price appreciation. BTCI has delivered strong performance since its launch in November 2024, with a 38% total return. Capturing roughly 50% of Bitcoin's price appreciation while paying a 28% distribution yield. BTCI faces key risks including Bitcoin's inherent price volatility, regulatory uncertainty, and technological vulnerabilities, with the potential for large price swings in the underlying asset.
An array of funds now exist for enthusiastic investors hoping to seize the potential tailwinds for crypto under the incoming administration in January. Those investors with the risk appetite for bitcoin investing don't want to miss the NEOS Bitcoin High Income ETF (BTCI) when filling out their portfolio.
Bitcoin prices surged this week on President-elect Trump's tapping of Paul Atkins to lead the SEC and comments from current SEC Chair Jerome Powell comparing the digital currency to gold. As bitcoin hovers near $100,000, interested investors should consider the NEOS Bitcoin High Income ETF (BTCI) for its income generation potential.
Bitcoin prices continue to set new records post-election, benefiting from the tailwinds of another Fed interest rate cut. Prices crossed above $77,000 briefly for the first time in trading Friday, reported The Block.
NEOS Investments launched the newest fund in their options income ETF suite today, this time bringing the strategy to bitcoin. The NEOS Bitcoin High Income ETF (BTCI) combines bitcoin investing with a covered call strategy that benefits from elevated volatility.