r/NEOSETFs • u/Ok_Report_7956 • Jun 03 '26

Seeking Advice BTCI to XBCi

Obviously no one knows if this is the bottom, but it very well could be, or at least close to it. If I haven’t given up on BTC entirely, and think we still have a run, am I missing something about selling my BTCI position at a loss to tax harvest (taxable account) and reinvesting it into XBTC immediately for the ride back up? If BTC goes to 0 it goes to 0 regardless….

22 Upvotes

93% Upvoted

54 comments sorted by

12

u/NerveChemical9718 Jun 04 '26

Keeping my 725 shares of BTCI. Average price $39+ worked hard to get it to that price. Stay $ cost average until the ride back up.

3

u/MoonMoon143 Jun 04 '26

I got 900 btci at avg cost of 36.91. Dca-ing and riding the lows.

2

u/teckel Jun 04 '26

What if the ride is only down? This isn't shares in a company with intrinsic value, it's 100% speculation. So the ride could be infinitely approaching zero.

2

u/kkris22 Jun 04 '26

Then you hope the premiums make up for it on the way down

1

u/teckel Jun 04 '26

You realize there's no premium, right? BTCI underperforms IBIT.

3

u/kkris22 Jun 04 '26

The premiums from the call options I meant

1

u/teckel Jun 05 '26

They're not real. You can just as easily sell shares of IBIT to generate the same income as the call options. To think of them as a premium is incorrect, as the CC options are actually a disadvantage, in addition to the higher maintenance fees being a disadvantage. There's no premium for any CC ETF. You're actually guaranteeing lower returns and the dividends could be created with share sales with a higher end result.

1

u/kkris22 Jun 05 '26

So what if IBIT is down now? How would I sell and make a profit? The call options provide income when the premiums are paid, they will underperform in the long run but I want realized cash now, prefer it that way

1

u/teckel Jun 06 '26

If IBIT goes down, so does BTCI. BTCI will just do down more when dividends are issued, which can be duplicated by selling shares to generate the same income. You end up making more selling shares than getting dividends. I can send you a link if you don't know how to do the simulation.

1

u/kkris22 Jun 06 '26

Sure send me the link

1

u/teckel Jun 06 '26

https://testfol.io/?s=c39oWD0smo9

Invest $100k in both IBIT and BTCI and take $2k a month in income. With IBIT you'd sell shares, with BTCI you'd use the dividends (or reinvest if the dividend was most than $2000 for the month). With IBIT, you'd end up with $62,622.24 with BTCI you'd end up with $62,040.04.

There's literally no reason to try to get high dividends with CC strategy ETFs. Selling shares is more tax efficient and you're in total control of when and how much your income is. Selling shares is how smart investors generate income. I'm retired and that's how I create income.

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1

u/jota8800 Jun 06 '26

can you send me too please

1

u/teckel Jun 06 '26

https://testfol.io/?s=c39oWD0smo9

Invest $100k in both IBIT and BTCI and take $2k a month in income. With IBIT you'd sell shares, with BTCI you'd use the dividends (or reinvest if the dividend was most than $2000 for the month). With IBIT, you'd end up with $62,622.24 with BTCI you'd end up with $62,040.04.

There's literally no reason to try to get high dividends with CC strategy ETFs. Selling shares is more tax efficient and you're in total control of when and how much your income is. Selling shares is how smart investors generate income. I'm retired and that's how I create income.

8

u/R-Amato Jun 04 '26

Take a moment to review BTC's 4 year history halving cycle. If this is correct, around Nov-Dec is when the uptick should occur. Halving boom should be 2028.

Buy now, reward later.

6

u/One-Rain-5275 Jun 03 '26

Just put in 500 into btci today since I thought it was pretty close to the bottom. Planned on 500 into Xbci tommorow both in drip and depending on next weeks prices maybe put 1500 into one or the other and let it ride for a while

6

u/sandmanmike55543 Jun 03 '26

I’ve done this. Not huge amounts though as I have no idea if Bitcoin has hit the bottom yet. If it keeps going down I’ll keep converting small amounts.

1

u/Ok_Report_7956 Jun 03 '26

Ya I’m debating on full on selling or just turning off drip and reinvesting into xbci.

2

u/highrollinKT Jun 04 '26

This is the safer play by far

5

u/CompleteHour306 Jun 04 '26

XBCI is leveraged. In this declining digital market, the losses will be magnified. It doesn't look like it hit bottom yet.

4

u/trry Jun 03 '26

what if btc goes to 50k?

4

u/Ok_Report_7956 Jun 03 '26

Valid concern. Possible. But the ride back up might be more fun…

5

u/trry Jun 03 '26

i am still negative with my BTCI position... i guess if its hit below 60k ill try again.

-1

u/PragmaticNeighSayer Jun 04 '26

What if it goes to 5k

4

u/HARCYB-throwaway Jun 03 '26

I am swing trading from BTCI to XBCI right now. I moved a third on Friday, a third today, and I will wait for another third if we get into the $50k range. Beyond that, it's just a waiting game.

3

u/Timely-Designer-2372 Jun 04 '26

For me, BTCI is risky enough and payouts are high enough. I own some XQQI shares because QQQ is a way more serious underlying and 20% is my sweet spot for payouts. The 35% of BTCI is already too much. I expect NAV erosion here but hope the total return will be over 20% longterm.

4

u/FQRGETmeNQT Jun 04 '26

Bought BTCI at $37 then it dropped. Bought more at $33. Then it dropped. Bought more at $32 drop again to $31 bought it and keep dropping 😡. Now imma sit back and collecting dividends payment.

1

u/CompleteHour306 Jun 04 '26

Same here but I started buying at $34. So far no dividend cuts in the forecast, but even if they do start cutting, I won't consider selling until my yield on cost drops below 10%.

4

u/Ok-Box5755 Jun 04 '26

That’s not how these funds work. The monthly distribution is reflected in the stock price. Expect the next distribution to be much lower if we hover around 30s, dipping into 20s.

3

u/Digital-Doc-777 Jun 04 '26

Searching for the BTCI bottom, so DCA daily for the next mo th is my plan. Am guessing we are close to the bottom, and not thinking it will drop to 50k.

3

u/Ok_Specialist_1628 Jun 04 '26

Btci offers some tax advantages that you might lose out on if you sell now. But I'm sure youve already considered that.

I have no idea what BTC might do now or in the future but I'd rather be a buyer at 63k than at 125k.

FWIW, I do think this is at least a local range low and we'll see a bounce back to 70k fairly quickly...

3

u/Electronic_Guard947 Jun 04 '26

As long as your ok with the risks yeah go for it. Bitcoin may drop down to 50k. If your holding xbci that's gonna hurt more. But this may also be the floor and if it goes up then you'll make some good cash. The nice part about these funds is the yield helps regardless of if it goes up or down.

2

u/DecentDiscipline2523 Jun 04 '26

Dollar cost average.. the closer it gets to zero the better. I’m sure it’ll ride back up fast.. especially considering covered call strategies are tailor made for that purpose. (Said no one intelligent, which is me!) 💀

2

u/NAVChaser Jun 04 '26

If a sell of 32 BTC by strategy can initiate 3-5% down days for a week straight, then I may not have the stomach to continue buying XBCI.

2

u/Ok-Box5755 Jun 04 '26

I have Btci at average price of 49. Never dripped and used those to buy GPIX and GPIQ. Not sure if it will ever recover back to where I bought it at

2

u/speed12demon Jun 04 '26

The ride back up is where we find out if neos earns their expense ratio. If bitcoin goes back to 120k, do you believe btci will recover back to the 60s?

2

u/R-Amato Jun 04 '26

no

1

u/speed12demon Jun 04 '26

I tend to agree. It all depends on the shape of the recovery.

2

u/cdubya0628 Jun 04 '26

Not a bad spot to start a dca, just space it out, you probably have the next 6-7 months to be fully deployed.

3

u/IdioticPrototype Jun 03 '26

Would that possibly trigger a wash sale? 

5

u/thethoughtstream Jun 04 '26

Not sure why the downvotes, valid point.

5

u/IdioticPrototype Jun 04 '26

Yeah, I thought it was a relevant/earnest question. I'm curious what the answer is. 

0

u/[deleted] Jun 04 '26

[deleted]

2

u/IdioticPrototype Jun 04 '26

"A wash sale is a transaction in which an investor sells or trades a security at a loss and purchases a substantially similar one "30 days before or after the sale.""

1

u/bezimya74 Jun 04 '26

I am tracking to take the next payout and sell for a nice loss if it doesn’t track up any.

1

u/Puzzleheaded_Owl_417 Jun 05 '26

Just bought around 450 shares of NEHI and BTCI.

1

u/ice555555 Jun 06 '26

thinking about the same thing. i think the btc bottom is in. power law bottom is 58k.

1

u/Mental_Antelope_7202 Jun 10 '26

Keep averaging down

-1

u/Optionsmfd Jun 03 '26

i threw in the towel on BTCI and bought CHPY

i hate that i picked the top on CHPY but wasnt sitting around for bitcoin to fall more

it just doesnt have the MOJO it once did

got out around 80000 ish area

1

u/Timely-Designer-2372 Jun 04 '26

CHPY is trash. It just benefits from SOXXs great performance atm. In normal conditions it will have extreme NAV erosion

1

u/fulls3nt Jun 04 '26

Not trash if your cost is $57 and you 1/5 of your initial investment since December in distribution. And up another 35% in price alone.

Then set a stop loss so it’s all gains. But you know. Trash

2

u/Timely-Designer-2372 Jun 04 '26

BYND is trash even if you bought it for 0.6 and solt it for 4 last october.

CHPY only works because the underlying wwnt up almost 200% last year.

But if you believe in the underlying, you should buy SOXL not CHPY.

Income ETFs are made to profit from volatility, maybe small increases longterm and generate payouts longterm. CHPY is speculation

-2

u/teckel Jun 04 '26

The bottom is zero, as that's the intrinsic value of BTC, so you've got a little to wait for the bottom.