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BITX: 2x leveraged (daily) bitcoin futures ETF - Why is risky to invest in a leveraged ETF ?
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50% of my NW is in BITX. It's a 2X leveraged bitcoin ETF. I highly recommend it. BITX pays 11% dividends which I choose to reinvest. NFA.
Easy! I'm sharing my full Bitcoin income strategy using IBIT, designed to work through market cycles, generate cash flow, and minimize taxes over the long term. The strategy is built on the 500-day halving theory, covered call income, margin management, defensive hedging during bear markets, and the principle of never selling the core position. Here's the deep breakdown: I started with \$300,000 in capital: * \$60,000 in a Roth IRA, fully invested in IBIT * \$10,000 in a Roth 401k, invested in SPY * \$230,000 in a taxable brokerage account, fully in IBIT I also borrowed \$165,000 using margin to increase my IBIT exposure. That brought my total IBIT position to \$455,000, at an average cost basis of about \$57/share. Each week, I sell covered calls on my IBIT holdings, targeting around 0.10 delta. Historically, this type of strategy yields around 15% annually. On \$455,000, that generates approximately \$68,250 per year in premiums. Here's how that breaks down: * About \$9,000 in premiums come from the Roth IRA and are completely tax-free * The remaining \~\$59,250 come from the taxable account and the margin-funded shares Margin costs me 5.25% annually on the \$165,000 borrowed, which is about \$8,662 per year in interest. I pay this interest using a portion of the premiums collected from the weekly call sales. After interest, my net premium income is approximately \$59,600 per year. Of that, \~\$50,600 is taxable and \~\$9,000 is tax-free. Importantly, I apply the after-tax, after-interest portion of the premiums—what I call "net net income"—to gradually reduce the margin balance itself. Over time, this means my debt is shrinking while the asset value of IBIT potentially grows. Even before a cycle peak, I’m reducing risk in the background without selling any shares. In addition, from my full-time job earning \$56,000/year, I contribute approximately \$600/month to my investment accounts. This ensures I meet the annual Roth IRA contribution limit while slowly boosting my long-term tax-free holdings. I contribute 6% of my salary to my Roth 401k, and my employer matches 4% into the same Roth 401k. Because of my combined salary and taxable option premium income, I land in the 24% to 32% federal tax bracket, plus California’s 9.3% to 11.3% income tax bracket. On the \~\$50,600 in taxable premiums, I expect to pay around \$22,000 to \$25,000 annually in taxes. But here's where the real strategy kicks in: My core principle is to never sell IBIT. Instead of realizing capital gains, I generate weekly income from covered calls while allowing the ETF to appreciate. This avoids triggering taxable events related to selling. The only time I'd realize a gain is if I get early assigned on a call and my shares are called away. If that happens, I’ll check the holding period. If I've held the shares for more than one year, I qualify for long-term capital gains; if not, I try to avoid assignment by rolling the option out and up. If Bitcoin crashes before the expected ATH window, I have a contingency plan. I can sell a deep in-the-money LEAP call at a much lower strike than planned—perhaps even \$25 or \$30—depending on the price at that time. This allows me to raise enough capital from the LEAP premium to pay off the margin and eliminate interest payments. I don’t panic sell IBIT. Instead, I use the premium income and the LEAP structure to manage downside risk while keeping my core holdings intact. When the market reaches its expected peak (based on the 500-day post-halving theory, which puts the next top around September 2025), I plan to sell a deep-in-the-money (DITM) LEAP call, such as a Jan 2027 expiration with a strike around \$30 or \$40. If IBIT reaches \~\$100/share by then, a DITM LEAP can yield a very large premium, potentially \$50+ per share. Selling this LEAP gives me a large upfront cash inflow without actually selling my shares. I use that LEAP premium to fully pay off the \$165,000 margin balance. That eliminates interest costs and removes margin call risk entirely. Most importantly, because a LEAP sale is an open position, I don’t pay taxes on that premium until one of three things happens: the LEAP is assigned, expired, or closed. Until then, it's unrealized. This is key: I remove debt at the market top, neutralize risk, and defer taxes. I can then continue selling weekly calls on any uncovered portion of my IBIT, generating more income even after locking in the top through the LEAP. During the bear market phase (typically about 12-18 months post-ATH), I accumulate cash from call income. I do NOT DCA blindly. Instead, I hold and wait. When we hit deep bear market lows (expected late 2026 or early 2027), I plan to buy more IBIT or rotate into leveraged ETFs like BITX, or long-term LEAP calls on IBIT or MSTR. This aggressive reinvestment during fear phases is how I compound over multiple cycles. The strategy I follow during the bear market is almost identical to what I do in the bull phase, but inverted. I shift from selling calls on IBIT to doing the same with inverse instruments. I apply the same covered call strategy to positions in inverse ETFs like SBIT or BITI, or use shares of inverse MicroStrategy proxies like SMST or MSTZ. I sell weekly calls against these bearish instruments while they appreciate in a declining market. This provides income during downtrends and gives me even more cash to deploy when the market bottoms out. The account structure is also intentional: * Roth IRA: tax-free growth + tax-free weekly income from calls * Roth 401k: tax-free SPY growth * Taxable: income and appreciation with margin flexibility By combining this structure with cycle-based timing, I avoid taxable sales, maximize cash flow, defer realized gains through LEAPs, and only reinvest at the deepest value points. This isn’t financial advice, but it is my real strategy: full-time job, low lifestyle cost, Bitcoin ETF compounding, option income, responsible use of margin, applying premium income to reduce debt, contingency planning for early crashes, bear market hedging, and cycle-based patience. I’m not trying to time days or weeks. I’m trying to own time itself.
Easy! I'm sharing my full Bitcoin income strategy using IBIT, designed to work through market cycles, generate cash flow, and minimize taxes over the long term. The strategy is built on the 500-day halving theory, covered call income, margin management, and the principle of never selling the core position. Here's the deep breakdown: I started with $300,000 in capital: * $60,000 in a Roth IRA, fully invested in IBIT * $10,000 in a Roth 401k, invested in SPY * $230,000 in a taxable brokerage account, fully in IBIT I also borrowed \$165,000 using margin to increase my IBIT exposure. That brought my total IBIT position to \$455,000, at an average cost basis of about \$57/share. Each week, I sell covered calls on my IBIT holdings, targeting around 0.10 delta. Historically, this type of strategy yields around 15% annually. On \$455,000, that generates approximately \$68,250 per year in premiums. Here's how that breaks down: * About \$9,000 in premiums come from the Roth IRA and are completely tax-free * The remaining \~\$59,250 come from the taxable account and the margin-funded shares Margin costs me 5.25% annually on the \$165,000 borrowed, which is about \$8,662 per year in interest. I pay this interest using a portion of the premiums collected from the weekly call sales. After paying interest, my net premium income is approximately \$59,600 per year. Of that, \~\$50,600 is taxable and \~\$9,000 is tax-free. I also work a full-time job earning \$56,000/year. I contribute 6% of my salary to my Roth 401k, and my employer matches 4% into the same Roth 401k. Because of my combined salary and taxable option premium income, I land in the 24% to 32% federal tax bracket, plus California’s 9.3% to 11.3% income tax bracket. On the \~\$50,600 in taxable premiums, I expect to pay around \$22,000 to \$25,000 annually in taxes. But here's where the real strategy kicks in: My core principle is to never sell IBIT. Instead of realizing capital gains, I generate weekly income from covered calls while allowing the ETF to appreciate. This avoids triggering taxable events related to selling. The only time I'd realize a gain is if I get early assigned on a call and my shares are called away. If that happens, I’ll check the holding period. If I've held the shares for more than one year, I qualify for long-term capital gains; if not, I try to avoid assignment by rolling the option out and up. Now, when the market reaches its expected peak (based on the 500-day post-halving theory, which puts the next top around September 2025), I plan to sell a deep-in-the-money (DITM) LEAP call, such as a Jan 2027 expiration with a strike around \$30 or \$40. If IBIT reaches \~\$100/share by then, a DITM LEAP can yield a very large premium, potentially \$50+ per share. Selling this LEAP gives me a large upfront cash inflow without actually selling my shares. I use that LEAP premium to fully pay off the \$165,000 margin balance. That eliminates interest costs and removes margin call risk entirely. Most importantly, because a LEAP sale is an open position, I don’t pay taxes on that premium until one of three things happens: the LEAP is assigned, expired, or closed. Until then, it's unrealized. This is key: I remove debt at the market top, neutralize risk, and defer taxes. I can then continue selling weekly calls on any uncovered portion of my IBIT, generating more income even after locking in the top through the LEAP. During the bear market phase (typically about 12-18 months post-ATH), I accumulate cash from call income. I do NOT DCA blindly. Instead, I hold and wait. When we hit deep bear market lows (expected late 2026 or early 2027), I plan to buy more IBIT or rotate into leveraged ETFs like BITX, or long-term LEAP calls on IBIT or MSTR. This aggressive reinvestment during fear phases is how I compound over multiple cycles. I also don’t sit idle during down markets. I’ll consider inverse BTC ETFs like SBIT to profit from the downside, or use puts or inverse ETFs on MicroStrategy like MSTZ or SMST. I hedge actively and build war chests during bear phases. The account structure is also intentional: * Roth IRA: tax-free growth + tax-free weekly income from calls * Roth 401k: tax-free SPY growth * Taxable: income and appreciation with margin flexibility By combining this structure with cycle-based timing, I avoid taxable sales, maximize cash flow, defer realized gains through LEAPs, and only reinvest at the deepest value points. This isn’t financial advice, but it is my real strategy: full-time job, low lifestyle cost, Bitcoin ETF compounding, option income, responsible use of margin, and cycle-based patience. I’m not trying to time days or weeks. I’m trying to own time itself.
I’m so fed up with crypto !! I was all in on crypto so much that I sold all my ETF’s that have exploded the past month like BULL MKT ETF’s ; BITX TSLL CONL TSLT TSLR PLTR MSTY MSTX SQQQ TQQQ SOXL GGLL YINN NVDX NVDL ROBN PTIR BEAR ETF’s ; NFLT NFXS NVDD NVDQ NVD TSLQ TSDD TSLS TSLZ UVXY SOSX. Plus many more. I was making bank going up or down I was making money on the stock and dividends. What a regard. I kept thinking that bull run was gonna blast off for the past six months. All I did was lose money. I am definitely not a good investor. I sold them all and bought all crypto. I got so mad one day and sold everything I had on six different exchanges. Took a major hit, but said F it.
Saif is a boss! -50% maybe, but -80% drops might be over for good. Nonetheless, IBIT BITX anyone? These ETFs are outperforming all others YTD.
Where’s my IBIT BITX gang at?
I’m long IBIT and BITX, hedged using options. GBTC merely following, eg, fund inflows and outflows. GBTC beating most ETFs, so the yearly -1.5% is negligible for those who it, it has $20B AUM for a reason. Whales own it, mostly.
**IBIT, BITX, GBTC** Might wanna load up, train about to leave again after a brief pause for a week or two.
Yes BITX and BITO have made me money
So I asked chatgpt what the big deal is since im not big on finance. I understand the real vs fake but not the 2x thing being crappy. So I asked chatgpt what the problem was and said lets say bitcoin goes up 100k in a month: # 🔹 Scenario 1: Smooth, steady climb * BTC rises **+2% per day for 30 days** (no major drops). * BITX returns ≈ **+4% per day** compounded → after 30 days, you get **well over +200% total return**. * So yes, **BITX can significantly outperform BTC** in this case. # 🔹 Scenario 2: Volatile climb * BTC hits $100k, but with ups and downs (e.g., +5%, -3%, +4%, -4%...). * Even if BTC ends up +100%, **BITX might return much less than 200%**, or possibly even underperform due to **volatility decay**. * Daily leverage amplifies both gains and losses, but doesn't compound linearly. So I can see that this isn't a great play for long-termers. It's more for quick trades when you think it's going to go up. Unless chatgpt didn't get this right.
I see your IBIT, FBTC and MSTR and raise you BITX (2X leveraged for twice this fun)
**IBIT BITX club, let’s go!**
Im waiting to load up on $BITX 2x leveraged Bitcoin Futures ETF. I can buy this with my 401K.
Stay down so I can buy BITX on Monday.
Same, we'll see how it goes though because you never know. The options chain gave me that vibe on Friday at market close before Moody's downgrade came out. For example, BITX had repeated out of the money hits in the last 5 minutes of trading on Friday. I was watching and went with SQQQ calls instead which were also late repeat hits.
45% of my net worth is in BITX: 2X leveraged BTC. I think it's the right balance but I wouldn't judge anyone who had 80%+. I'm VERY happy with how things are going.
**IBIT, BITX, GBTC* Load up folks! Rocket is merely launching.
I find it super interesting that BITX is down Year To Date even though it is supposed to mirror 2* BTC. If BTC is up, BITX should be up. So why isn't it?
Haha it's 2X leveraged (BITX) so you can consider it more even
I own some BTC. I own very little ibit but it makes sense for some. For price action I dabble with leveraged products like BITX and MSTR (not actually leveraged but historically has acted that way).
I'll simplify it even more, openly the yearly chart on BTC and BITX; UP 22% vs DOWN 30% respectively. I don't know how people put money in these things without looking at how they track beforehand. It also tracks the futures which adds another way to lose money over time.
I’ll do you one better. 50% IBIT and 50% BITX 2x leverage. All in.
I just bought BITX on this dip. Does that count?
Everyone does it man. I traded BITX for a while and lost more BTC than I gained. Will just hold Bitcoin from now on and every year if I have a bonus I’ll just DCA that.
Probably like 65-75k. I have some BITX, MSTR, MARA and pure coins. So tough to really know. Sold a ton of my 20k cost basis at 45k sold a ton of my 55k basis at 100ish, and now wait for 120k to sell a ton of this tranche
I have 9con of 3/21 BITX $50c so I'm just hoping this doesn't crash down before I can cash out. I bailed out of all my actual coins when they were still higher than they are now. So as long as that idiot can be a useful idiot for someone besides Putin while we have no say in it, I'll take it.
You can short or buy puts on BITX.
Buy Bitcoin and be patient. If you want faster gains use low leverage (BITX). Don't go chasing the moon with flavor of the week coins. You will be left empty handed.
Up 15% in less than 24 hours on BITX, I love panicked noobs!
the volatility is a gift, I hodl, but keep about 5% in cash I will be getting some BITX soon, probably Monday, I don't think that we will see 93k, if so I am taking another bite.
Yes, every day I buy! Today it was on sale, so I bought even more BTC exposure via IBIT, BITX, and MSTR.
Fellow regard here. Did the same with BITX and bought some more bitcoin.
Sure, ignore BTC and buy alts that may bleed in BTC value over time. If you’re trying to get rich quick and don’t mind losing it all buy alts. Otherwise buy BTC. If you want faster gains buy BTC with leverage or a leveraged BTC ETF like BITX or even MSTR.
I'm getting richer every week thanks to BITX. My 3400+shares have ballooned like crazy. If BTC hits 200K next year I'll be a millionaire.
Yes, but that doesn’t mean it’s bad to buy and trade in and out of when bitcoin does what is does. Bitcoin gonna go up to 125k+ soon enough and everyone shorting MSTR because they think it’s a bubble that popped when it fell from 540 a few days ago. I just personally won’t be buying it again until the bear market bottom when its much closer to NAV. It’ll almost always have a slight premium to NAV. Right now I’m just sticking with trading the 2x bitcoin fund BITX and the regular bitcoin fund to hedge against leverage decay in BITX due to volatility. But I’m doing it this way because these are instruments that are directly correlated with bitcoin’s price. MSTR isn’t directly correlated and comes with extra risk than a directly correlated etf.
It’s above 80% for many people because of the run up. It’s less than 50% for me in BTC, BTC ETFs, and all crypto but that can swell much higher if BTC goes to $200K next year. I may start taking some profits then but never sell the whole thing rather I’d reduce leverage and buy real BTC instead of BITX
I was buying MSTR at and around 120 but sold at 500. It’s down quite a bit now but bitcoins about to go to 125k+ in the next couple weeks so it might not be a bad buy right now if you can get in sub 400, then hold for when bitcoin does that. But everyone that’s still uneducated is certain that MSTR was a bubble that popped and it’s down from here so there’s a lot of short interest in MSTR and they’ll all get burned when MSTR goes back up because bitcoin isn’t done yet. I personally think that MSTR’s market cap to NAV on their Btc holdings ratio is too high right now. And after getting out of MSTR have gone all in on a mix of BITX (2x btc fund) and FBTC(regular btc fund) . I was already in BITX too while I’m MSTR. But now my account is at an insane new high, so I’m lowering risk by holding about 65% regular bitcoin etf to avoid any leverage decay from volatility in BITX. And then about 35% in BITX so that when bitcoin does do it’s thing I’ll still get greater upside exposure.
I don't know why you're getting downvoted, but I think it's because they frown on trading here. I will tell you that I day-traded BITX successfully for months and made decent gains. I understand the desire--at least in my case, it was worrying that I'd gotten in late and wanted to increase my starting stake before the giant run-up that may happen in the coming years. I finally resolved your question for myself this way (and am simply holding through the turbulence now, trying to avoid getting stressed, which gets easier every day): * We've seen decreasing volatility with increasing institutional adoption. This decreases risk, partly because for there to be a big shift away (pensions divesting, BlackRock reversing course and advising to avoid BTC, spot ETF approval reversed and/or other regulatory headwinds suddenly to appear, etc.) wouldn't happen overnight. * The likelihood of a giant dip/crash of the type routine in past cycles is diminishing, really seems to be quasi-disappearing. That's because the influence of day trading on the price diminishes with increasing uptake. We have just slowly been ratcheting forward, and every time we do some soothsayers hard-predict a crash of 50% but it doesn't happen. * That leaves some other black-swan event. MSTR falling under an investigatory cloud could impair the price a bit temporarily, but wouldn't suffice for a huge crash, I think. It'd really take cracking the system in some way, which I think is unlikely. **TL;DR:** My personal take is that technological risk is a far-off theoretical possibility, and regulatory risk wouldn't happen overnight, so I *personally* think the likelihood of a large crash is low and decreasing all the time. Thus in your place I wouldn't wait for one to re-buy, no.
$BITX is even better if it keeps going up
Be careful with leveraged things like BITX. It's great when the price is rising, but you'll get whittled away when it crabs and destroyed when it crashes. Just compare the 1-year chart for BITX with BTC. Not awesome. Consider the BTC ETFs instead. Even MSTR, which comes with its own particular risks, would be better than BITX, at least in my anon internet guy opinion.
Just buy BITX or IBIT in your 401K and make sure you get access to make trades yourself.
Correct. This is the new 1 Million club. I’m basically there but in BITX. Will sell for real BTC soon.
Among the most mature, reassuring, and realistic posts buddy, I appreciate it on many levels. I’m 39 years old, I have .5 BTC 5.5 TH and then my equities in brokerages and 401(k)/Roth - I stopped trimming my BTC years ago at the .5 and I’m not sure if I will get to a full coin but listen closely, bro. This is an accomplishment in end of itself and not something to be slept on. To someone else’s point earlier, we are far ahead of the curve and are outliers in this regard, and you should be nothing but proud! Now – that being said 🤣 I have a few grand in some lever BTC and ETH equities that I play with on the dips (BITX and ETHU respectively) and I do it with a smile alongside my .5 Bitcoins. With that, I share my congratulations to you and everyone here. Thanks for the share and best of luck to you as well 🤙🏼🤙🏼
not as well as chatgpt Time decay, often referred to as theta in options trading, describes how the value of an option decreases over time, all else being equal. This is particularly relevant for exchange-traded instruments like MSTX and BITX if they involve options or derivatives. Let’s break it down with a focus on potential applications: Time Decay (Theta) Explained What is Time Decay? Time decay represents the erosion of the extrinsic value of an option as it approaches its expiration date. Options are composed of intrinsic value (the difference between the strike price and the current price of the underlying asset) and extrinsic value (the value due to time, volatility, etc.). Why Does It Matter? As expiration nears, the uncertainty about the future decreases, reducing the extrinsic value of the option. Time decay accelerates as the expiration date approaches. MSTX and BITX Context If MSTX and BITX are Stocks: Stocks themselves do not have time decay because they are not time-bound instruments. However, if you're discussing options on MSTX or BITX, time decay applies to those options. For example: Call Options: Lose value as time passes unless the underlying stock price rises significantly. Put Options: Lose value unless the underlying stock price falls significantly. If MSTX and BITX are Leveraged ETFs or ETNs: Leveraged ETFs or ETNs that track indices (like MSTX and BITX might) experience decay over time due to compounding effects, especially in volatile markets. This is not traditional time decay but a form of value erosion over time. If MSTX and BITX are Cryptocurrencies or Tokens: Cryptocurrencies themselves do not experience time decay. However, if there are crypto options or derivatives on MSTX or BITX, time decay would apply to these contracts just like it does for stock options. Time Decay Implications for Options on MSTX and BITX Daily Impact: Theta affects the value daily, with the greatest impact as expiration nears. Trading Strategy: Buyers of Options: Must overcome time decay with a substantial price move in the underlying asset. Sellers of Options: Benefit from time decay as they collect the premium, betting the option will expire worthless.
My karma is too low to post anything but I tried to make a post looking for a way to leverage as much as possible to buy bitcoin or bitcoin related things. I am refinancing some rentals to get cash to buy as much as I can. A someone respond with advise on how to get the absolute maximum exposure? I am aware of margin on Robinhood which I believe allows me to trade double what I deposit? Can I buy BITX with margin?
Seeing this coming early this year is what convinced me to stop pussyfooting around with BTC and put some serious cash in to BTC and to BITX. It was at a peak and “way overvalued” then too, and I’ve since made a very nice return. Seriously, anyone reading this, get in now. It’s too late to be a billionaire but not too late to get excellent returns.
BITX and BTCZ make a great pair
Boohoo your story is a dime a dozen. I too heard about BTC in 2011 and didn’t buy but I bought later and still made a lot of money. You can too. Have some balls and buy BITX (2X leveraged) and sell for real BTC once we hit 150-200K. Then just hold forever. Do something now or you will cry again in <10 years when we break another zero.
Just buy BITX or MSTR and you will make faster gains than BTC. Then sell and put it all in real BTC and never look back.
That was odd. I caught it because I have BITX and Robin Hood alerted me. What caused it? Big Whale sell a bunch?
BTC will break $200K before end of 2025. I am betting a lot of money on this by buying and holding BTC and BITX.
40% and growing, was 70% but once btc went over 40k and my allocation was at like 75% I started buying index funds instead. But then about 3 months ago in august I leveraged all my index funds to buy the 2x leverage bitcoin ETF and MSTR, now I’ve more than doubled my stock account so my bitcoin allocation dropped that much just from my stocks growing. This is all realized profit too and has been put back into index funds. Will never sell my actual bitcoin, but hoping to continue multiplying my portfolio by trading the bitcoin cycle. We’re in a new paradigm this year with all the related ETF’s and stocks. There’s a new generation of investors trading the bitcoin cycle on the stock market and seeing more success than they ever have before. I mean you got nonleverage bitcoin etf, leverage btc etf BITX, MSTR, MARA, short bitcoin etf BITI. I’ve been consistently profitable since the end of 2022 with this strategy, but now with more options than ever. My net worth has doubled in the last 4 months, tripled this year to date, and about 20x’d since December 2022. At current rate I’ll be a millionaire by 2027-2028 and multi millionaire by 2030-32. I also wouldn’t advise many or anyone in some cases, to do what I’m doing. It’s incredibly risky, especially when using leverage to buy an already leveraged product. I hedge with actual bitcoin, index funds, and a rather large allocation of cash/short term bonds(SGOV, bought mostly from my profits). On pullbacks I barely notice because of the bonds/cash, total market funds, and non leveraged bitcoin, but on the rallies BITX really explodes while regular bitcoin holding also gains. I’ve paid >300$ in interest for using leverage, and have realized roughly 43,930$ in profits in the stock market with this strategy. Things are always subject to change, I’ve lowered the risk after this recent run up just cause I’ve already doubled. We’re still in bull territory but that recent rally was the one I was waiting on/sure off. Now I’ve taken profits and lowered my downside risk, I still believe it’s going up a good amount more, but won’t risk it all. Once we peak in about 12 months I’ll go short for the initial fall then take profits early again. Then at the bottom I’ll put all these profits into bitcoin and I’ll finally have over a full coin, while using the same strategies on the stock market into the next bull run to see outsized returns, should that still be a viable option.
In a lot 68% of BITX to make up for all the times I missed and holding on for $100k+
Okay, do that with BITX and sell your profit for more BTC if you’re so confident in your timing. This is not financial advice.
Bitcoin ETFs like BITX, they pay dividends! You can keep your money in the stock market if you really want to.
How to invest in Bitcoin *now* and still buy the dip. Step 1. Determine how much you can afford to invest long term (a.k.a., what you can afford to loose). Step 2. Open brokerage and retirement accounts if you don't have them. Step 3. Move that money there. Max out tax advantaged retirement accounts first. Step 4. Put upto half into 2x Bitcoin related ETFs such as $BITX. Note the percentage of your portfolio you decide upon. Step 5. Invest the remainder conservatively into non-crypto-related positions you can easily move into and out of. Step 6. Rebalance portfolio daily to your target percentages. This results in buying low and selling high if bitcoin and the rest of your portfolio move by different percentages.
Also, if you want to try your hand at a leveraged etf, BITX is a 2x etf
just buy BITX with 0.75x the money u were originally gonna buy it with
Are there any options to get leveraged exposure to Bitcoin that is slightly more risky than Bitcoin but less risky than BITX?
Login to QT, go to Management, Account Management, select you previously opened margin account, activate the Margin power and link it to your TFSA. I get an Max Buying power which seems to be double of what I own and depending on what I buy, I get 50%(BTC EFT or 30% (MSTR) of that power to buy stocks. Basically, you get half of what you have in you TFSA. I'm DCAing some ETF weekly and playing with MSTR BITX SBIT directly. I might try MSTU next week. I journaled some FBTC to FBTC.U to get USD power. I suggest you read the QT docs for more precise info.
Anybody have more insight into that comparison between MSTR and the leveraged ETFs like BITX/BITU? How does the risk compare?
The BITX chart is a good example, it was 57 when BTC was 73k in march now 64 at BTC 99k. I made a lot of money selling bitx calls.
If BTC goes to $150k, I'll sell the BITX in my Roth IRA and buy FBTC.
diversify into MSTX, BITX, and ETHU, (traditional ETFs in crypto) and ignore the haters to the bank.
I’ve been selling some of my MSTX and buying some IBIT and BITX. So yes?
There have been options on bitcoin ETFs for weeks (BITX, BITU).
There have been options on BITX and BITU for a while. You should be more worried about all high funding rates and leverage on Bitcoin positions. The liquidations could be brutal when the correction comes.
2 week dated OTM MSTR calls? Load up in BITX stock? Buy Bitcoin on leverage if you’re outside of Canada? Or just buy Bitcoin?
I invest some percentage under 50% in leveraged ETFs like $BITX and $CONL so that I can buy low and sell high while still having comparable exposure as the hodlers.
They'll probably be approved for retail traders just in time for top lol. And I'm never shorting bitcoin! In the meantime I have a little action in BITX and ETHU call options expiring early next year. Deribit has great options, but not avail to US customers
Yeah. I was being a pessimistic bone head. I've been eyeballing BITX for its x2 leverage but its a little confusing which means I should just buy BTC and ETH at the moment.
Holy shit! It's a great week to be holding BITX.
the world's biggest degens live on wall street fund managers will push BITX for their clients and buy KEKEC with their commissions
It won't let me post a screenshot but I just go to Yahoo Finance, type in the ticket and click on 3M. https://finance.yahoo.com/quote/BITX/
If you're trading, you may be interested in BITX.
BITX is a 2x bull index of BTC futures. Basically it tries to mimic Bitcoin movement 2x up or down. Pays a dividend of about 18% plus you can sell call options on it which sell for a significant amount. You can sell a call option for double the price is currently is about a year out for 20% premium on its current price.
Wow thats a great strategy ill make sure to try it. I have been in SMST, MSTX, BITX and MSTR. Leverage trading is currently banned in Ontario where I live and I cant leave the province right now as I am in a 2 year citizenship process. Ill try decentralized exchanges, thanks you though its very helpful
For fun I opened a small position in the BITX 2x daily leveraged BTC ETF. It's not real bitcoin, but it might provide some boost over the next year. It does bleed against BTC during crab season and of course especially in downturns!
How do yall feel about BITX, it’s a 2x leverage. I’ve got most of my Roth allocated to it and obviously doing great, but thinking about buying FBIT just 1:1
Went big in BITX 2x Bitcoin ETF last week. LFG!
People asking "why" don't understand the landscape for this asset class. BTC is an institutional asset now. As fears of economic constriction rise, the capital available for risky assets dries up. We just heard from Wall St's biggest tech giants that they are struggling with their AI spend. While it's producing great revenue, the spend to upkeep their current growth rates is rising, while revenue plateaus. This means extra capital which overflows into PE investments dries up. Temporarily this dampens the current trajectory. This is exacerbated by potential tariffs under a Trump presidency, as many of the necessary spends are imports (Taiwan). I don't think it will stop a bull run, but forward looking assets projecting a steep glide path will get hit hard. Think BITX, MSTR, BITO, etc. All those products will take a beating. Expecting to go lower until spending fears are lessened. Most likely 60k before 80k, although I still see BTC trending up long term (forever). Position: 40k MSTR Puts expiring EOM @ 250 strike
Interestingly, I was thinking BITX for double leveraged without margin. Good info.
I fucked up and put 20k in BITX (leveraged ETF) when BTC was at 64k 4 months ago. Didn't understand that that leveraged ETFs reset every day. Even though BTC is above 70k and I bought it at 64k, I'm still down like 10%. Upside is I've gotten 4 months worth of dividends totalling 1k, and if I hold longer, I'll still come out ahead.
Get on MSTU and BITX for leveraged btc exposure in stocks...
Don’t hold BITX overnight, and absolutely not over the weekend. That is a day trading tool, and that’s it.
I’m holding 1000 shares of BITX right now already 20% up. I made a ton on MSTR BITX and FBTC in the last few months. I’m very bullish on bitcoin right now. I will buy more BITX if it goes down a little bit but it might not.
I’m only like 40% bitcoin, it was like 70% before I made a bunch of money on stocks with bitcoin related tickers like MSTR MARA BITX. I also own a house and have cash and index funds, 70% was a big allocation, I wasn’t gonna sell to rebalance and bitcoin kept going up so it took months of buying index and some good investments in the tickers mentioned above to get it down 40%. Of course it’s probably gonna go up alot more over the next year and the allocation will grow to 70% again probably.
I have BITX and don't love MSTU based off the amount of BTC they own vs share price. The USD value of all the bitcoin they own is significantly less than the USD value of MSTU. Now that said MSTU have been closing that gap slowly with taking out cheap loans and buying more bitcoin. I think the stock price will rise, but feel more comfortable with BITX. Also Bitcoin Mining companies are another great option, MARA for instance has the same strategy as MSTU in a way and are buying BTC as well as Mining it daily for cheaper than it costs. My advice is hold some even if it's 10% or 20% in non leveraged BTC, one of the ETFs or self custody. If it was me, buy BTC etfs and if BTC drops, sell the etfs for BITX or MARA. Its hard to not do an all or nothing, but just ease into anything. Buying? ease in until the price seems too good, such as the recent 53k drop. Selling? ease in, sell some at say 80k, and if it goes to 90k don't sweat, or if it drops back to 70k buy some back. Don't become a daily trader, just look at monthly trends, keep an eye on the price, and casually execute. Unless you love day trading, it's like a casino, but it wasn't for me (despite making a killing), the money wasn't worth the stress and anxiety of day trading, I would be much richer, but less happy. Anyway, MARA or BITX lol
I'm aware of leverage decay and the fact if Bitcoin drop like 50% in 2022 then my BITX would amplify to 100% loss. But I just think I am 22 years old and if I put in $50k into BITX, then imagine if I get 6X return, then I would have $300k. I know I have a fairly high risk tolerance and $50k I could make it back in my lifetime, but the thought of having $300k at my age would be amazing
I'm only writing this because I honestly didn't know this until a few months ago - all of these have severe leverage decay "**due to the compounding effect of daily returns, also known as "volatility drag."** This means that the returns of the ETFs may not match the returns of the underlying asset over longer periods I was extremely lucky with my timing with BITX last year and luckily I got out and just went into IBIT since bitcoin has been crabbing along. Take a look at BITX now, the decay is very obvious. These investment instruments are NOT meant to be held for more than a couple of days (or weeks) at the max.
BITX, BTFX, BITU, MSTX. If you’re going to hold an ETF instead of the underlying asset, you might as well use some leverage.
I enjoy holding and trading BITX, which is a 2X leveraged bitcoin ETF. I prefer it over using margin trading on crypto exchanges based on the way they calculate leverage and also the restrictions due to where I live in the US. It's safer on Fidelity and like the other user said it's not a taxable event in a Roth IRA.