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The Time Is Right to Consider These Bitcoin ETFs

It’s often said that “timing is everything.” But that’s more of a general life saying than it is applicable in the world of investing, because market timing is incredibly difficult. That said, an array of timing-related factors could be indicating that more bitcoin upside is imminent.That potentially indicates income-generating funds such as the NEOS Bitcoin High Income ETF (BTCI ) and the NEOS Boosted Bitcoin High Income ETF (XBCI) are worth considering today. An interesting footnote to consider regarding these two high-yield ETFs is that the largest cryptocurrency is coming off a scintillating August rally. It surged 25% then, and bitcoin has followed that up with a solid September performance. Prior to this year, each of Bitcoin’s positive Augusts were followed by negative September showings.More Potential Tailwinds for BTCI, XBCISpeaking of calendar-related matters regarding BTCI and XBCI, October 1 marks the start of the fourth quarter. That’s usually the strongest three-month period in which to own bitcoin. Historical data confirms that over the digital currency’s life span, it usually generates its best monthly performances in November and October. There’s another reason tactical income investors may want to evaluate BTCI and XBCI over the near term. That’s because, assuming bitcoin’s four-year cycle holds, October could bring an official end to the digital currency malaises. That assumes a bottom wasn’t notched in August. “Historically, bitcoin has tended to bottom roughly 12–14 months after the prior peak. Investors also watch the broader four-year halving cycle: In the past, spring has tended to begin about 18 months before the next halving, which in this cycle is expected around March 2028,” according to E*TRADE. To be sure, there are no guarantees that seasonality will repeat in a given year. And bitcoin could be challenged over the near term by macroeconomic factors. Those include elevated oil prices, high Treasury yields, and another Fed interest rate hike. Any of those scenarios could highlight some of the benefits of BTCI and XBCI. Because as options-based ETFs, they have the potential to buffer against some of bitcoin’s downside. Hopefully, downside isn’t something HODLers have to worry about in the fourth quarter. Some data points indicate bitcoin could surge into year-end. For example, traditional spot bitcoin ETFs hauled in $2.4 billion last week. And there’s evidence that “whales” have returned to the market and are gobbling up bitcoin anew. For more news, information, and analysis, visit the Tax Efficient Income Content Hub.

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