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Summary NEOS Bitcoin High Income ETF offers a compelling way to monetize Bitcoin's volatility while maintaining exposure to potential upside. BTCI's covered call strategy sells far out-of-the-money calls on only half its portfolio, enabling significant upside participation and robust income. The fund currently yields an annualized 28.75% and remains attractive unless Bitcoin fundamentals break or regulatory risks materialize. I maintain a buy rating on BTCI, emphasizing its resilience through Bitcoin's cycles and its ability to generate returns independent of price appreciation. Buying low and selling high sounds simple. But in practice, it’s one of the most consistently failed “skills” in investing. Prices fall, sentiment deteriorates, and what looked attractive at higher levels suddenly feels uninvestable. The recent crash over the last few weeks and months in Bitcoin's prices is a good example of this dynamic. Nothing has fundamentally broken in Bitcoin over the last few months, and yet, its price in USD has fallen dramatically since its all-time high in October. Data by YCharts This should be a prime opportunity to buy more of the NEOS Bitcoin High Income ETF ( BTCI ). An asset such as Bitcoin does not have clearly definable intrinsic value, as the ultimate goals of cryptocurrency in general are ideological in nature. I am generally bullish on cryptocurrency and Bitcoin, but determining price targets for Bitcoin is largely speculation. That's why BTCI is so interesting and attractive. The fund allows you to participate in some of the speculation behind Bitcoin while monetizing what's real, which, in the case of Bitcoin, is its volatility. I maintain a Buy rating on BTCI and would continue adding to a position unless Bitcoin fundamentals break. Nothing Has Fundamentally Changed For Bitcoin The drops in Bitcoin may look scary, especially to those who haven't traded Bitcoin in its early days. Institutions and investors who buy ETFs aren't used to assets as large as Bitcoin losing half its value in a matter of months, after all. However, it's not so scary when you look at Bitcoin's history of crashes . Bitcoin's first major crash was in 2011. After rising to around $30, Bitcoin fell over 90% to roughly $2. The crash was largely attributed to a hack in the prominent exchange at the time, Mt. Gox, where a significant amount of bitcoins were stolen from various wallets. This problem with the Mt. Gox exchange would lead to another crash between 2013 and 2015 where the collapse of the exchange would lead to a prolonged drawdown of over 80%. Bitcoin rose to over $1,000 before declining to around $150. Bitcoin recovered, but it would only be a few years before it experienced another crash. In 2017, the rise of initial coin offerings ("ICO") led to a surge in retail participation and pushed Bitcoin to nearly $20,000. This created a bubble, and that bubble burst under regulatory scrutiny, which led Bitcoin to fall to approximately $3000. Again, Bitcoin would recover. It would then crash again in 2020 as a part of the broader COVID crash and then recover. Then it crashed again in 2022 when rapid interest rate hikes contributed to a broad deleveraging that would expose key entities like the Terra coin, Three Arrows Capital, and the FTX exchange. And again, Bitcoin recovered. Data by YCharts In all our previous crashes, Bitcoin never fundamentally broke. Its exchanges may have been hacked, but the coin itself was never hacked. Bitcoin never changed its fixed supply, and it continues to successfully operate on a proof-of-work model that does not require a central authority. Anyone can still run a node, send transactions, and hold Bitcoin. None of the above has changed in today's crash. Once again, the crash we're experiencing in 2026 and late 2025 has been attributed to a general deleveraging and is part of a consistent cycle of accumulation, expansion, euphoria, and deleveraging. Regulation approvals for spot-crypto ETFs in 2024 have ultimately led to significant adoption and a rise in Bitcoin's prices. But it also meant a deeper ability to leverage the asset through margin, swaps, and derivatives. Couple this with a movement led by Strategy ( MSTR ) to become crypto-treasury companies, where company equity is leveraged to buy cryptocurrency, and naturally, there would be significant price appreciation in Bitcoin that was waiting to unwind. There's no guarantee that Bitcoin will eventually rebound to new highs, but history has shown that the coin is resilient. Today's crash is no different than the previous crashes, and there is little reason to believe that this is the time Bitcoin loses all its value. I would also argue that we've experienced much of the drawdown and are more than halfway through the deleveraging phase. What's different about today compared to previous crashes is just how much institutional adoption there is. The iShares Bitcoin Trust ETF ( IBIT ), for example, has over $48.59B AUM. There are many ETFs, such as BTCI, whose operations revolve around these Bitcoin ETFs. Even general all-equity funds such as the Fidelity All-in-One Equity ETF ( FEQT:CA ) in Canada have positions allocated to Bitcoin. There would need to be a bigger change for Bitcoin to lose more value and fall to pre-2024 levels. BTCI's Advantage Now, to many BTCI investors, a worry isn't actually the downside of Bitcoin, but its upside. BTCI is a fund that sells covered calls, and selling covered calls is a strategy that will cap your upside in exchange for a premium. It is Bitcoin's actual upside, however, where things become much less clear. Bitcoin and the value of cryptocurrency as a whole are ideological. It is essentially the ideas of the free market and democracy for money. Fixed supply, open access, and no central control are very appealing for money, especially in the face of unprecedented government spending and a falling U.S. dollar. But putting a price target on these aspects is pure speculation. What has been real and measurable for Bitcoin, however, is its volatility. Using the IBIT as a representative for Bitcoin, you can see how Bitcoin's 30-day rolling volatility has been consistently higher than the S&P 500 represented by SPY and the NASDAQ 100 represented by QQQ. Bitcoin's volatility has consistently exceeded popular commodities like gold via GLD and oil via USO as well. Data by YCharts What makes BTCI particularly attractive is that it captures some of this volatility and distributes it while offering upside capture. The two main calls that BTCI sold in February are set to expire March 20, 2026, and have strike prices at 2130 and 2220. The Cboe Bitcoin U.S. ETF Index (CBTX) that BTCI is trading is currently at 1,583. This means that BTCI's calls are at about 34.55% and 40.24% out-of-the-money ("OTM"). In other words, Bitcoin can rise about 34.55% to 40.24% in this next month before upsides begin to be truly capped. Additionally, BTCI's calls do not cover its whole portfolio. The total 2,650 contracts that the fund sold only cover about half of BTCI's total assets. That means about half of BTCI's portfolio, whether in its synthetic long or actual long positions, is open to full capital appreciation. BTCI Holdings, Feb 24, 2026 (NEOS Investments) You would think that selling calls for OTM and on only half of your portfolio would lead to lower distributions. It is true that BTCI's distribution rate has fallen, given that the fund managers generally target a percentage yield of NAV. The most recent distribution of $0.76 still amounts to an annualized yield of 28.75%, though. And this is where BTCI ultimately shines. You'll still capture a significant amount of upside if Bitcoin rises, and if it doesn't, you'll still get hefty monthly payouts. Key Risks Of course, this strategy can fail. The most obvious risk is how the path of returns plays out. If Bitcoin rallies above the strike price, BTCI will underperform the underlying asset. We already discussed this. What will be a more deadly scenario is if Bitcoin repeatedly moves above the strike and then reverses. For example, if Bitcoin decides to move up over 40% around this time in March and then suddenly crashes again, BTCI may be left in a scenario where they failed to capture the full upside while retaining most of the downside. This scenario would cause NAV erosion, and it is what we have seen since BTCI's inception date on October 16, 2024. Up until October 2025, Bitcoin had a very good year, and you can see how BTCI did not capture the full capital appreciation due to selling covered calls. At the same time, however, BTCI would experience similar downsides in its price. The option premiums from selling covered calls do offset overall total losses, but they do not do anything with regard to limiting underlying asset price falls. Hence, BTCI is down over 31% since its inception, while IBIT is holding at 2.55%. Data by YCharts NAV erosion issues are the reason why you must factor in distributions and should generally reinvest at least a portion of your distribution. Fortunately for BTCI, the yield is so high that you can reinvest over half of your distributions and still have a "take-home" yield of over 10%. When you factor in distributions, you'll begin to see why BTCI's strategy can be appealing. The fund has still captured a good portion of Bitcoin's upside while muting its downsides. Data by YCharts Data by YCharts Barring Bitcoin's complete technological failure, there are other factors that can contribute greatly to a continued sell-off to even lower lows. The two main factors that come to mind are whether crypto-proxies fall to a level where debt obligations are put into play and unforeseen government regulations. The crypto-proxies and MSTR, in particular, are a worry, as MSTR's Bitcoin holdings are officially lower than what they had paid for. Continued sell-offs could lead to a death spiral where MSTR is required to constantly unload Bitcoin to support its debt obligations, and the sales push valuations even lower to repeat the cycle. Unforeseen government regulations can also play a major role. Taxes, for example, had been a major concern last year, when unrealized cryptocurrency gains may have been subject to mark-to-market capital gains tax . Fortunately, the U.S. government has been relatively pro-crypto and actually exempted cryptocurrency from those rules. Conclusion I continue to view Bitcoin as an asset with uncertain valuation but persistent demand. It has gone through multiple cycles, each with its own narrative, and it has continued to recover. That doesn’t guarantee it will always do so, but evidence does suggest that the asset is not disappearing. I rate BTCI a Buy because instead of relying entirely on price appreciation, it attempts to generate returns from Bitcoin’s volatility. You give up some upside, but you gain an income stream that is supported by elevated implied volatility.