Summary After a volatile 2025 with Bitcoin peaking above $126,000 before a 30% correction, I'm committing to buying enough NEOS Bitcoin High Income ETF equivalent to one full Bitcoin for meaningful exposure and high tax-efficient monthly income. BTCI has demonstrated the ability to track Bitcoin's price movements and hedge against downturns, lessening the blow during crypto corrections. Despite BTCIs attractive high 25-38% yield, investors should not rely on this level of income long term due to declining volatility of the asset over time. Back in February of this year, I covered NEOS Bitcoin High Income ETF ( BTCI ) in depth: how the fund works, its competitors, and how investors can use the fund in their own portfolio to manage the asset risk of Bitcoin. Since then, I've learned more about Bitcoin and developed a lot of comfort with the asset. We've also observed heavy investment and business structuring around Bitcoin between institutional investment, product offerings, and treasuries like Strategy Inc. ( MSTR ), ProCap Financial, Inc. ( BRR ), and Cardone Capital buying Bitcoin at a blistering pace. Bitcoin has had a volatile ride in 2025, peaking above $126,000 before correcting 30%, but BTCIs high monthly distributions, which range between 25-38%, turn this volatility into a consistent cash flow cushion. The key risks remain and were felt this year: capped upside in rallies and significant downside risk during crypto winters, but for my new goal, I think it's worth it. I've since committed to building a position equivalent to one full Bitcoin's value via BTCI ETF. I want the exposure to Bitcoin and cash flow an options ETF can provide to help offset all my fixed expenses: subscriptions, car tabs, cellphone, water, internet, energy, insurance, fuel, property taxes, and grocery bills with passive income to have financial security. While building ownership of a single Bitcoin is a somewhat concentrated and challenging endeavor, over time it should represent less than 10% of my estate while hedging inflation, growing wealth, and providing cash flow. Bitcoin's Performance At its peak, BTCI was floating between a 50-75% return attributed to Bitcoin's $75,000 to $126,000 price increase from April to October 2025 this year. However, since inception in 2024, BTCI has outperformed the S&P 500 by 6% at 26.37% vs. 20.34% respectively due to Bitcoin's price dive back to the $80,000 range in the last few months. This, in my opinion, has been a great buying opportunity for both Bitcoin and, in my case, BTCI. Due to the inherent high volatility of Bitcoin, dollar cost averaging over time and taking advantage of large dips is an excellent approach to managing your Bitcoin position. This is exactly what I'm doing now as I buy $50 of BTCI per day and reinvest all the distributions. Data by YCharts Year to date, BTCI and Bitcoins returns didn't end up turning out positive outside of a pending year end spike compared to the S&P 500s excellent and steady 19% return. Interestingly, BTCI faired a little better on total returns compared to Bitcoin and iShares Bitcoin Trust ETF ( IBIT ) being only down -1.34% vs -6-7% for Bitcoin. BTCI has moved very nicely and in line with Bitcoin itself with slightly less volatility. The payouts have provided a real buffer during these choppy consolidation phases. Pure Bitcoin is great for treasury companies or those who want to preserve wealth, for me its just hard holding something with no cash flow or more importantly, an exit strategy to convert the asset into cash flow. The biggest personalities in the space don't recommend selling Bitcoin, but what good is $5M of Bitcoin in my Estate if it just sits there producing nothing? I believe Bitcoin will have more applications to generate cash flow in the future, options strategies are just one of them. Data by YCharts Income Risk While I initially see and will continue to see a large chunk of my portfolio income rapidly come from BTCI, eventually around $2,000 per month, over time I believe it will actually only be 5% of my income needs as volatility drops and my dividend growth positions grow into seven-figure positions. Over the past five years, Bitcoin has declined in volatility considerable relative to the USD and I expect the asset to decline further as time goes on, but stay above the volatility of say, the S&P 500. Bitcoin 5 Year Volatility (bitbo.io/volatility/) Bitcoin 1 Year Volatility (unusualwhales.com) Bitcoin's implied volatility is 0.405 compared to 0.112 for the S&P 500 so still quite a bit more volatile. This means BTCI should continue paying out significantly more than, say, NEOS S&P 500 High Income ETF ( SPYI ) which pays a 12% annual yield steadily, but I caution investors to not rely on 25-38% annual yields forever, as I could see the yield coming down to 16% one day as volatility lessens. Coupled with potential declining distributions, keeping your cost basis under control is another risk to manage to lessen paper losses. That's why I recommend both dollar cost averaging over time into Bitcoin and buying the dips. Outlook Nearly one year ago, BTCI was my tentative entry point into Bitcoin without abandoning my focus on income. After proving itself through 2025's roller coaster and crash, or more like a correction in the crypto world, I've committed to the product as a way to get exposure, upside, and income from a great alternative asset that's rapidly changing the world and the way we do business. I currently own roughly $10,000 worth of BTCI or over 200 shares. To own one Bitcoin via BTCI, you need roughly 2,000 shares, give or take 100 shares, based on historic BTC-USD/BTCI ratio price movements. For fellow income-oriented investors on the fence about crypto, this correction is a good time to consider gaining some exposure to BTCI and Bitcoin before we march our way back up into another six figure Bitcoin.
