Earning 7.14% dividends on the ProShares Bitcoin Strategy ETF

in LeoFinance10 months ago

This ETF follows the price of Bitcoin futures and provides a direct correlation to price unlike Greyscale and Microstrategy investment trusts. I bought some shares many months ago when Bitcoin was in the 40k range so it has dropped in value somewhat. Though I had no idea over the coming months the dividends would grow enormously. Currently at 7.14%

https://seekingalpha.com/symbol/BITO/dividends/yield

https://www.marketwatch.com/investing/fund/bito

Owning "Bitcoin" in paper form is considered a no-no to many. Such people that own gold stocks know from precious gold owners they can sometimes give grief for it. As it is not truly owning gold or silver. So the same can be said about Bitcoin ETFs and investment trusts.

In my opinion you should have both, just like you keep some cash on hand and the rest in the bank account.

No idea if the dividends will hold at this level or drop down, but it would seem to be a very attractive way of putting investments into Bitcoin.

https://buybitcoinworldwide.com/halving/

With the Bitcoin halving date 325 days from now, it may be a good idea to buy more BTC or to buy BTC correlated assets. We are right around 75% through the current block reward with miners earning 6.25 BTC per block. Soon it will half to 3.125 in around April of next year.

Source:
Note: Different Hive, not this blockchain. They are a mining company.

I plan on adding more funds to this ETF as I expect the price to rise months after the halving, as it has done every other time in history. Though this is not financial advise. Just wanted to point out to the Hive community what I noticed in my own investment portfolio. And maybe others would be interested in this ETF as well.

Personally I have held off on buying Greyscale and Microstrategy stocks, as they were not directly tied to the price of BTC. But with Proshares product now you can, and currently earn a nice yield off it too. Most stocks produce no dividends, and the ones that are considered high yielding are usually over 5% so I expect others to take notice of this rising yield for this ETF.

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It's an interesting strategy but not currently something I'm going to personally do.

I personally feel like I have more control if I post assets like BTC, ETH, LTC, DOGE on Venus and then borrow stable coins against it and then ultimately trade to HIVE and then to HBD and earn the 20% APR. So you have the underlying position to catch the capital appreciation and also stack more funds to try to outpace inflation.

A lot of moves in between and still have some contract risk.

Oh okay, best of luck with your strategy..

Greetings, this good to take as a strategy, it is always good to organize investment plans and good more now that we are in the cryto burst.

I plan to add more funds to this ETF as I expect the price to go up months after the halving, as it has done every time in history.

This you say will undoubtedly happen my friend.

Thanks bud, time will tell.

I'm stocking up one it for sure, it's going to soar again soon!

Good idea.