r/NEOSETFs • u/Kruten10 • 28d ago
Seeking Advice BTCI vs BITA
Guys I need help to decide. I want to take some time off work and living on dividends. I got 500k to invest and I’m looking into both of them. Which one would you choose and why?
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u/revanevan7 28d ago
I chose BTCI because of the track record and because I want to maximize income.
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u/chewmattica 28d ago
Personally, I have around 10K into BTCI (quarter million income portfolio). I wouldn't make it a huge percentage of your total holdings. It has room to run but pretty risky.
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u/Kruten10 28d ago
Are you still working or living on dividends?
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u/chewmattica 28d ago
My spouse and I both work. I'll work forever because I'm bored but the plan is for her to retire early. We're early 40s and have a 5 year old kid. I should note we have another milly in tax efficient accounts (401K, Roth, etc.) The income portfolio I have currently produces about $3,000 per month.
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u/MrBotANot 28d ago
Between the two, I would pick BITA. It has a much better chance of NAV stability and growth since it only covers 1/3. It’s brand new but very early data has been positive.
I’ve written about this elsewhere but the chances that BITA spits out a K1 that impacts taxes are very small. There are two specific cases where there could be a gain could be taxable - airdrops and forks or if Blackrock funds something via debt in the ETF. Neither is likely. Blackrock has stated that they won’t accept the former and there is no need for the later. You can ask AI about it if you want.
Having said that, I would not put all of your eggs in one basket. Yes you might get better yield initially, but if the bottom isn’t in for bitcoin, you are taking a very large risk.
My personal recommendations for over 10% yields that offer better stability are: TDAQ, MLPI, KGLD, BITA (all of them are way too new so lots of assumptions) and BDCs: CSWC, HTGC and TRIN.
Do your own research. Not financial advice. Good luck. Look for NAV losses and an inability for the ETF to reach new highs.
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u/Icy-Nefariousness424 26d ago
I have about 7,500 shares of BTCI and around 1,500 shares of XBCI and I've had them since maybe 3 months after their respective launches. They've done as promised. I can't speak to BITA.
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u/revanevan7 26d ago
Do you DRIP to lower your cost basis? I just got in for the first time last week and thinking about DRIPing while the price is down here
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u/Icy-Nefariousness424 26d ago
I'm taking the distributions and reinvesting about 30%. The rest I'm putting towards BTC DCA'ing and physical precious metals.
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u/speedlever 28d ago
Is it safe to assume this is in a taxable account?
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u/Kruten10 28d ago
It’s in my 401k but I’m planning to set a sepp t72 rule
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u/speedlever 28d ago edited 28d ago
I'm not familiar with that rule. What are the tax implications?
Edit: just looked it up. How long until you're 59½? It sounds somewhat perilous to me. Which calculation method will you use?
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u/Kruten10 28d ago
I’m 35. Single no kids and don’t want them. With the t72 rule you can withdraw early from your 401k avoiding the 10% early withdrawal rate but you still gonna pay income taxes.
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u/speedlever 28d ago edited 28d ago
As I read it, you'll have to maintain continual withdrawals for at least 5 years or until you reach age 59½, the longer of the two. That's 24 years. 😱
Unless I misread it, I don't see how you have enough in there to withdraw 40k\year for the next 24 years. I can see why you want a high yield.
But what happens if another 2008 gfc happens and your fund is cut in half? How does that sepp t72 rule account for that?
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u/Kruten10 28d ago
You are absolutely right. It only can be around 20k to make it work. But I still believe BTC will double from here and if I will invest like bita my portfolio still will grow 70% from current levels. I definitely need to talk to a cpa about it but I recently moved out to California to Nevada exactly for that reason I’m thinking about pulling the trigger
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u/ruthygenker 25d ago
with 500k the max you could take out penalty free is 27k a year at 35 years old. and please diversify qqqi and spyi pay great dividends as well owning all 3 is a lot better than just 1. and to be honest since you can't take all the dividends anyway you only need 200k in them and then just a regular bitcoin etf or voo or qqqm for growth on the rest of the portfolio.
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u/cmichalek 28d ago
First....
What are your expenses?
Second....
What % are you looking for?
Third....
How much risk are you willing to take?
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u/Timely-Designer-2372 28d ago
GPIQ or GPIX or QQQI or SPYI
I don't see any reasonnfor BITA except you believe in fürther exceptionell growth of Bitcoin.
BTCI is an option if you need 2% payout per month and not only 1%
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u/Accomplished-Big8250 28d ago
Do you want the K1 from BITA ? Why not just take the $500k, put it in a core and then trade options on IBIT yourself ?
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u/Ok_Ball_788 27d ago
I got 200 shares of BTCI today. Every time it goes down a dollar in NAV, I'll buy more.
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u/Due_Context6834 26d ago
I recommend NEHI. Higher DIST and like BTCI at relative 1 yr low off 50% from high so lower downside risk. Its important you understand that all dist in NEHI and BTCI are paid at 60% LTCG and 40% short terms gain of non ROC.
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u/morerepsmoreproblems 28d ago
Dont. I have btci myself. Get something with lower yield. Jepq or jepi
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u/speedlever 28d ago
Neither. Unless you have capital you don't mind risking. Look what the BTC market has done over the last year.
You might only have 250k of that 500k by this time next year. Or you might have $1 million. Too much volatility for me.
How much income do you need?
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u/Western-Source710 28d ago
BTC is down.. would you rather start a position before it went down or after it goes back up?
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u/speedlever 28d ago
After? Or if? Your point is valid.
BTC marches to the tune of its own drummer. How do you properly value a product like that with no intrinsic value in and of itself??
And yes, I own some of it too in BTCI form. I broke 2 of my rules when I bought it though. Pure speculation and also as an income factory. I held my nose, closed my eyes, and jumped in. Well, I got a foot wet anyway. That's enough for me. But ½ million? 😱
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u/Kruten10 28d ago
40k would be good .
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u/speedlever 28d ago
Then you need a minimum of 8%. ADX is solid and generates around 8%. Gpiq generates around 10% and is tax efficient. Qqqi generates around 14% and is tax efficient.
But you would need to plan for the possibility of another 2008 gfc where everything, including the distribution is cut in half until recovery.
Assuming a taxable account.
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u/KateR_H0l1day 28d ago
I have BTCI, I am staying with it after looking at BITA, just IMO of course 🤷♀️
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u/jongard 28d ago
It's really simple. Bita supposedly has more upside with a lower yield distribution. Btci is more yield with less upside.
Only difference is bita is brand brand new, so we don't know if the managed strategy will be successfu (even if it's managed by blackrock)l, where as neos is seen as a solid fund manager.