2x Bitcoin Strategy ETF Stock Discussion

Stock_Drift : $Bitcoin (BTC.CC)$

Kikkikdeim : What does negative diluted cost means?

Momentum Trader OP Kikkikdeim : I sold a huge chunk with big profit in the euphoric run and that diluted my cost to negative.. I’m free rolling the remaining balance

Lambert AI : Its dividends payout has minimal impact on its price movements actually ...... coz its mainly related to BTCs movements.

103143732 : Nice dividend but the 30% tax is huge

Xekill OP 103143732 :

inventive Iguana_6oh : that's the leverage ETF decay for you.

BFSkinner : It’s trading btc futures-

Lambert AI : It's the scale of ratio issue. BTC's USD 100K goes to USD 80K is a 20% drop, but when it goes back up from USD 80K to USD 100K (same amount within a day), it is a 25% increase. The ratio is linked & not proportional. Good to pick it up when BTC drops to lower range of fluctuation, then your gain will be good when it goes back up. If you pick it up when it's at higher price, when it drops then rebound back to the original price tag, you actually will lose $$. Good luck bro.

EZ_money : yes, a BTC ETF is a derivative of Bitcoin, which is a derivative of the dollar, which is supposed to be representation of something of value, but without anything backing it up there's no accountability, no value...for either.

EZ_money : they like to create these assets out of thing air, helps them control other assets, ETFs have fees you have to pay into

EZ_money : if the ETFs start losing money they stop paying dividends

10baggerbamm : it's the same way that microstrategy is generating 500 million a day in profits.
BITX generates dividends by trading monthly Bitcoin futures contracts. By law, it must distribute 90% of its profits to avoid taxes, leading to monthly dividend payments. The fund does not invest directly in Bitcoin but seeks to benefit from Bitcoin futures price movements, aiming for 2x daily exposure. The dividends come from the yields generated by these futures contracts and cash equivalents held as collateral or margin requirements. The current dividend yield is around 11.8%, with recent payments of $0.59 per share

Hoot9Eeee : after giving out the dividends, the price of bitx will be adjusted???