{"id":8282,"date":"2025-01-17T17:02:54","date_gmt":"2025-01-17T17:02:54","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=8282"},"modified":"2025-01-17T17:02:54","modified_gmt":"2025-01-17T17:02:54","slug":"btci-unlocking-bitcoins-28-annual-distribution-yield","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=8282","title":{"rendered":"BTCI: Unlocking Bitcoin&#8217;s 28% Annual Distribution Yield"},"content":{"rendered":"<div>\n<h2 class=\"wp-block-heading\">Introduction<\/h2>\n<p>Building an income-focused portfolio can be tricky. Sometimes we have to sacrifice immense upside price potential for our desired income \u2014 especially when it comes to those high-octane growth stocks.<\/p>\n<p>Lucky for us, over the last few years industry incumbents have introduced covered call option strategy ETFs for nearly every high-flying index out there \u2014 Nasdaq-100, Russell 2000, etc.<\/p>\n<p>However, it wasn&#8217;t until recently that an income-focused alternative to these high-flying spot Bitcoin ETFs came about. As an income-focused investor, the <a href=\"https:\/\/neosfunds.com\/btci\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">NEOS Bitcoin High Income ETF (BTCI)<\/a> is my favorite way to own Bitcoin.<\/p>\n<p>By offering its investors a 28% annual distribution yield, this ETF is the best way to own Bitcoin in your portfolio if you care about both monthly income and potential price appreciation in rising markets.<\/p>\n<p><strong>In this analysis, I&#8217;m going to\u2026<\/strong><\/p>\n<ul>\n<li>Walk you through BTCI\u2019s investment strategy<\/li>\n<li>Reflect upon its performance since inception<\/li>\n<li>Suggest where it might fit inside of your income-focused portfolio<\/li>\n<\/ul>\n<p>Let&#8217;s dig in!<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\">\n<h2 class=\"wp-block-heading\">BTCI\u2019s Investment Strategy<\/h2>\n<p>The NEOS Bitcoin High Income ETF (BATS:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/BTCI#BATS\">BTCI<\/a>) seeks to distribute monthly income generated from writing call options on Bitcoin via Bitcoin index options \u2014 which seems to be the first ETF to do so. Given Bitcoin&#8217;s historically high volatility, the management team is able to write out-of-the-money call options that don&#8217;t cover the entire value of the portfolio. This means BTCI&#8217;s price has the opportunity to move up and down with the price of Bitcoin.<\/p>\n<p>For example, as of 1\/13\/25 the fund left 22% of its notional value &#8220;uncapped.&#8221; In this scenario, that means 22% of the fund&#8217;s value can move freely alongside the price of Bitcoin \u2014 unburdened by the &#8220;cap&#8221; of the premium income generated by writing call options.<\/p>\n<p><strong>This specific strategy is important for two reasons:<\/strong><\/p>\n<ol>\n<li>The Achilles heel of these covered call ETFs that could cause them to underperform their benchmark index is writing covered call options against &#8230;<\/li>\n<\/ol>\n<p><a href=\"https:\/\/www.benzinga.com\/markets\/cryptocurrency\/25\/01\/43062296\/btci-unlocking-bitcoins-28-annual-distribution-yield\" alt=\"BTCI:\" unlocking bitcoin annual distribution yield>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Building an income-focused portfolio can be tricky. Sometimes we have to sacrifice immense upside price potential for our desired income \u2014 especially when it comes to those high-octane growth stocks. Lucky for us, over the last few years industry incumbents have introduced covered call option strategy ETFs for nearly every high-flying index out there [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-8282","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8282"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/8282\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}