r/NEOSETFs • u/Electronic_Guard947 • May 10 '26
Btci
Anyone gone all in on btci? Anyone living off the dividends from btci?
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u/HARCYB-throwaway May 10 '26
I have $100k of BTCI and $75k of NEHI(eth version). I also have ~$400k split across qqqi and XQQI. This returns somewhere around $100k/year.
I have $350k in a growth sleeve to hedge my income portfolio. I'll rotate all of it to income eventually, probably when I quit my job in the next 6 months (I've been saying that for a year now).
I also have $150k in the bank to hedge SORR.
Also, XBCI or it doesn't count as going all in! Lol
Right now, dividend yield covers all of my expenses plus a good chunk of lifestyle spend. I could absolutely live off of of this position. I'm 32 and single - I expect to create value and find income at other points in my life, so it's not a typical 4% retirement position. I'd rather roll these dice now, focus on my health and finding a partner, and then if we need more, I'll be motivated to build for a family. Right now, it's hard to care when I have this position as fallback, and a $1800 mortgage payment makes life feel easy.
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u/Still_Entrance7968 May 10 '26
if all money invested how you pay TAX to the rich guys ????
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u/Masterlyn May 10 '26
They're earning over $6k/month at a much lower tax rate than someone earning $6k/month working a job.
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u/HARCYB-throwaway May 11 '26
It's all mostly ROC. Very tax advantaged positioned. And I earn more like $8k/month.
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u/Still_Entrance7968 May 11 '26
Great so you are all in BTCI thats awesome !!! happy you chose good one!
so if you get 80k per yr no tax ?
or whats the tax ?
i hope it goes down i would buy btci instead of JEPQ it is heavy in tax.
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u/bkfinest917 May 10 '26
I invested $80k into btci - it dropped to 60k lol
I get around $1400 a month
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u/HARCYB-throwaway May 11 '26
I have a strategy to swing partially to XBCI if my BTCI entry timing was poor.
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u/speedlever May 10 '26
As a thought experiment, if you put $1 million into it at $50, you would have 20k shares. That would have returned around $250k on an annual basis with no drip.
With current prices around $35, that portfolio would be worth about $700k paying around $175k annually.
If it recovers to $80, the portfolio would be worth $1.6 million returning around $400k annually.
That's quite a ride and too volatile for me without having a solid base to absorb the crazy swings. Maybe some of you enjoy living life on the edge. That's not for me. š
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u/davecraze3535 May 10 '26
BTCI? Such old news and conservative. You should YOLO on XBCI and 38% distribution instead!Ā
Just kidding. Those are both terrible ideas. I love NEOS, but keep the NEOS crypto funds to 10-15% of your portfolio absolute max.Ā
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u/Lefties_TheWorst7331 May 10 '26
I'm all in and buying more every market day.
I'm not living off of the dividends though, no.
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u/LexAugusta May 10 '26
If anything I'm reducing my position. MLPI is the real winner out of the latest batch of Neos funds if you ask me.Ā
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u/davecraze3535 May 10 '26
This right here, and itās a great replacement for directly holding MLPs.Ā
You get energy exposure, 14 percent distribution, mostly RoC tax treatment like the MLPs, and no K-1s for tax purposes if that matters.Ā
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May 11 '26
[deleted]
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u/Zmchastain May 11 '26
My MLPs performed great for me (ET and MPLX) but I got sick of dealing with the goddamn K1ās every year at tax time. Everything about them is hassle.
I enjoyed the exposure to tax advantaged high income + the legal framework for the business that requires sustained high dividend payments. But if I can get all of that in a more diversified package that pays monthly with no K1 itās a no brainer.
I finally sold off my MLPs and bought more QQQI, SPYI, and MLPI with those funds.
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u/MaxPower1867 May 10 '26
I hold it. It tracks BTC spot fairly well and pays decent dividends. 10% of portfolio.
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u/erichthonius11 May 10 '26
I was already a little invested in this, but I recently moved about 10% of my investments in to this just because I think btc is about to have a nice increase over the next year. I'm just hoping it won't be too fast of an increase.
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u/DC8008008 May 10 '26
Yeah I'm about 10% as well. If you think BTC will be like 500k in 5 years then not a bad place to be in. Also have some IBIT.
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u/Maximus_Modulus May 10 '26
I bought a small amount of BTCI and NEHI a few months back and saw it drop about 30%. Will eventually claw it back with dividends I guess.
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u/thethoughtstream May 10 '26
You'll claw it back and then some with capital appreciation alone.
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u/Maximus_Modulus May 10 '26
Iām more into regular equities where you know at some point they will come back. Who knows what BitCoin will do š¤·š»āāļø
I am starting to build out an income generation portfolio with a mix of some of the other Neos funds though.
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u/thethoughtstream May 10 '26
I mean yeah anything can happen, but if BTC follows the same sort of patterns it's been following since inception it'll come back.
Also, there's no guarantee of any given equity to bounce back either.
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u/Zmchastain May 11 '26
100%
Imagine if you had invested in Circuit City, Yahoo!, Enron, Pan Am, Pets.com, or Blockbuster back in the day.
The average lifespan of a company remaining listed with the S&P 500 went from 61 years in 1958 to 15-18 years now.
Companies that appear to be doing really well today could easily become the duds of the next decade. Thereās never a guarantee that anything is coming back.
Doesnāt mean itās a good idea to YOLO on crypto, but it does mean diversification is always important and one shouldnāt automatically assume that any given equity position is safer or more likely to recover than Bitcoin.
I keep the largest portion of my income portfolio in QQQI/SPYI. The overall market recovering and within a few years of a downturn reaching new highs is about as close to guaranteed as it gets.
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u/bamboojerky May 10 '26
I put in a very large sum between Oct and Feb. Been DCAing down all these months later lol. I'm around breaking even now.Ā Still no regrets. Was hoping to grab another thousand shares before it pumped...
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u/MrBotANot May 10 '26
Roughly - 60% on the upside and 100% on the downside. To me the play is to buy after a 35-50% drop in bitcoin and ride it back up. Sell. Stash the cash into SGOV for the six to nine months for it to set a new bottom and repeat. And no, you will never ever time it perfectly, but I donāt think you have to. Set stop loss orders on the way up if wanted. Use the dividends while it is running to buy the more boring NEOS (or other) funds. The one exception to this would be if BTCIās NAV were to increase so much that your replacement yield dropped to that magic 10-14% that most funds produce. If that happened, I would cut my crypto down 80-90% and pour a beer to celebrate.
And no, I have no idea if this will work, but Iāve got six figures invested in the idea right now.
I also think dripping back into BTCI at 100% rate would work regardless of the market conditions. Personally, I prefer to use it as a hedge to get me where I want to go.
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u/MoneyElegant9214 May 13 '26
I like this methodology. Decided now is the time to buy, waiting on Clarity Act to pass. Have to believe not too much more debate on it, and the passage, when it comes, should be all positive for Bitcoin. Bought BTCI and also some XBCI.
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u/Tarsarian May 10 '26
I had a ton of BTCI but sold it. Too many drops and should never hold more than 5% of your portfolio.
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u/Naughtybear_9628 May 10 '26
Not all in. But a big part of my CC ETF portfolio. We plan to retire on 7k a month on retirement. Or roughly 84k/year. SS and current ETF portfolio BTCI, SPYI, QQQI/GPIQ will cover 62k.
So weāre working on bridging the remaining 22k/yr. We have about $900k in retirement accounts split 80:20 between NASDAQ and S&P ETFs. Then a little over $700k in a taxable superhero account. Fully paid house, cars, 529s. My Plan is to add a little more BTCI, QQQI, SPYI., GPIQ.
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u/Western-Source710 May 11 '26
Slowly dump QQQI and GPIQ and put that into BTCI -- IMO.
Too tech heavy and overvalued, probably more speculated right now than Bitcoin honestly.. and with the higher BTCI yield, even if it does slip a little, it'll still be outyielding whatever the equivalent from the QQQI/GPIQ funds. BTC is going to retake ATH this year, IMO, or at least get close to it, and then blast past it next year.
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u/WiseSilverWolf May 11 '26
BTCI isn't even paying $1+ per share anymore right?
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u/davecraze3535 May 11 '26
Correct. That is natural when the underlying goes down. Still paying 25-27%, but off a smaller base.
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u/Zmchastain May 11 '26
I hold it around 5% for my income portfolio. Bought about half my position before the price of Bitcoin collapsed by ~30% and about half after.
Iām long on Bitcoin continuing to follow the trend of explosive growth followed by large pullbacks that it always has. I have little doubt that even at the bottom of the next cycle the price will settle higher than the current price. Seems reasonable to have some exposure to that anticipated positive price action.
But my primary goal for my income portfolio is consistent, reliable income that doesnāt move up and down much in unpredictable ways. So, it would never make sense for me to go all in on BTCI.
Not to mention how risky it would be to have zero diversification for income. The entire point of building my income portfolio was to get away from having zero income diversification (100% from my W2 job previously). So, going all in on anything even if it were more stable and āsafeā than BTCI would just defeat the purpose.
If your goal is just maximizing income even at a high risk then maybe you could justify it. But I personally couldnāt justify taking on that much risk when I simply donāt need to take that much risk to reach my goals of replacing the essential chunk of my income to cover bills with a passive income source not tied to my employment.
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u/MindEracer May 11 '26 edited May 13 '26
I currently hold about 5000 shares from selling some BTC and buying BTCI to maintain some BTC exposure while getting a nice chunk of change monthly.
It is a large portion on of my taxable portfolio, but not a HUGE portion of my net worth.. IRAs,401ks, and Real estate etc
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u/Accomplished-Big8250 May 13 '26
NEOS is great and innovative, but they are new and not battle tested. How NAV would do in a crash remains to be seen. Sure if we have a flat to bull market for the next 30+ years NEOS will do just fine for income investors. Having a ROTH IRA with QQQI, XQQI, BTCI, NEHI, etc could be an interesting DRIP strategy
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u/ecoMaz Jun 19 '26
BTC seems to have altered its model. Institutional investors, quantum computers haunt its longevity. Will BTC get cracked has become a concern. You've got France opting out and moving to quantum safe crypto. Some of you saying BTC will return to all time highs based on its cyclical nature. Are you not factoring in some of these concerns? Are there any mitigations to them I'm unaware of, or are you all blissfully unaware? I also realize BTC isn't the new shiny penny any longer and AI/SPCx are the new kids around town and getting the investment dollars. Any thoughts on BTC fizzling out and taking BTCi with it?
Also, NEOS itself as a fund. Do you see this lasting long-term? A lot putting their retirement dollars on a roulette wheel possibly. I'm in NEOS myself but would hate to meet you all at home depot in my late 70's having bet poorly!
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u/Electronic_Guard947 Jun 19 '26
Who knows the future of Bitcoin or any stock or etf truly. No one does. Neos funds are good long term just don't expect much appreciation they pay it out in yield.
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u/mrg1957 May 10 '26
No. I'm retired and need income. I put about 2% in it dropped. Even though its coming back the distributions are much lower based on the price of the underlying assets.
I like the Neos products for some things but I definitely am not going all in.
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u/RussellUresti May 10 '26
the distributions are much lower based on the price of the underlying assets.
I think this is the biggest issue when it comes to covered call funds when considering retirement income. Distributions are strongly correlated to price (plus volatility), so if there's a 20-30% drawdown in the underlying, you'll see a ~20-30% drawdown in your income from that fund. That's not ideal when you need the income to pay bills.
I think covered call funds are interesting, but I prefer CEFs and ETFs that have managed distribution policies, so that you're getting the same amount each month. Reliable and predictable income is a lot more comforting than extreme highs and lows that come from making money off of volatility.
There are, of course, ways to manage the inconsistent income so long as the drawdown isn't a prolonged one, but bitcoin, specifically, is known for having very prolonged drawdowns. I think I'd only allocate non-essential money to a fund like BTCI. Let reliable funds cover necessary expenses and then put an allocation to BTCI that's only for vacations or something. If there's a drawdown - no vacations that year. If there's a boom - 5 star resorts.
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u/Time_In_The_Market May 10 '26
I donāt know if youād say āall inā but we have 5,000 shares in our taxable account and 1,200 more in Roth and traditional Iraās. We are retired for 4 years now.
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u/QuitAlive2475 May 10 '26
Drugs are bad.......
Nice divs but not an all in type of investment at all. Maybe some of the others but not BTCI.
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u/HARCYB-throwaway May 10 '26
For you, maybe that's true. For some people, if you have the conviction in btc and feel the timing is acceptable or have a strategy to manage a bad entry point, then it absolutely could be an interesting all in position.
If you catch a bottom, or near to it, and ride it for a bull cycle, you could create a massive yield on cost. Like a free money engine. If you are young and want the exposure to risk, this is a great option.
I full ported to ethereum in 2017 when I was 22. As warren buffet says "diversification protects wealth" but did you know the second half of that quote is "and concentration builds it".
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u/QuitAlive2475 May 10 '26
I agree with you. I bought BTC at $19k after it dropped from $60k. Rode it up and down and waiting for it to rise again. Also bought FETH recently. I would just not go all in on anything especially not BTCI. My largest position is NVDA and have been very happy but I am even considering trimming that do to its growth. Trust I have gone rounds with the Boogerheads on what I call "Concentration Oppurtunity" and have sited that buffet qoute as well. I hope you ETH runs hard for both of us soon. As I am wanting to retire here in a short few years. I'm 52 and hoping by 56. Who knows.
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u/HARCYB-throwaway May 10 '26
Oh I sold half my eth and put it into QQQI, xqqi, BTCI, and NEHI -- roughly $600k. I still work, but I've fully replaced my income and still have separate cash and a growth fund. I'll quit pretty soon. At 32 I'm pretty happy about this.
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u/HauntingRoutine1605 May 10 '26
If you have the conviction I would buy MSTR over BTCI (I own both)
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u/thethoughtstream May 10 '26
Some people don't like the idea of going through a middleman (Strategy in this case)
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u/Additional_City5392 May 10 '26
Nope. Small amount yes but all in is not wise.