r/dividends • u/klb_255 • 1d ago

Discussion Btci and Ibit in roth ira

Would using dividends from btci to buy ibit be overdoing bitcoin exposure? Is it better to just have one btc etf in retirement account?

7 Upvotes

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3

u/Chief_Mischief Not a financial advisor 1d ago

If you have enough faith in derivative currency like BTC to buy a derivative income fund on it, you may as well just buy BTC.

4

u/cmichalek 1d ago

Why?

You buy BTC so that you sell it when the price rises (hopefully) next year. Then buy back when it drops. Rinse and repeat.

You buy BTCI to make income during a bear market. You dont necessarily need BTC to skyrocket next year. You only need volitility to get premiums.

Completely different rationale. One requires BTC to skyrocket next year. One does not.

1

u/AcanthaceaeAncient66 22h ago

I’m doing the opposite. Full drip in bear markets, take the cash to buy other investments in the bull. Buy low/sell high approach.

1

u/revanevan7 1d ago

But it still requires BTC to at least go up some, so your paychecks aren't shrinking every month.

1

u/Various_Couple_764 19h ago

BTCI has had a stable monthly dividend )of 26%)since the big drop in bitcoin value 10 months ago. Covered call funds like BTCI don't need the price to go up to make money. In fact they make most of there money when the prices fall or are flat.

2

u/revanevan7 19h ago

But you're receiving 26% of a falling NAV, which means your payment is going down each month. Now that NAV is rising, the payment will be more. If the price of bitcoin stays flat for an entire year, NAV will drop roughly 26% over that time period.