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Abstract

nly tracks the <i>futures </i>of Bitcoin’s price</li><li>It does not own any Bitcoin to back its price</li><li>It’s not guaranteed to follow the exact price or percentage fluctuations of BTC</li></ul><figure id="2c10"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/0*fdPaz9QPjmvgzB90"><figcaption>Photo by <a href="https://unsplash.com/@kanchanara?utm_source=medium&utm_medium=referral">Kanchanara</a> on <a href="https://unsplash.com?utm_source=medium&utm_medium=referral">Unsplash</a></figcaption></figure><h2 id="9275">Here’s the kicker though:</h2><p id="d926">Since the ETF is buying and selling contracts, the fund is making money when BTC rises in value and they sell a contract that’s more valuable than when they purchased it.</p><p id="0287">This leads to a taxable event for the ETF which they offset by returning the capital to investors in the form of a monthly dividend.</p><ul><li><b>When the price of BTC goes down from month-to-month, the dividend will be very small or non-existent.</b></li><li><b>When the price of BTC goes up, the dividend grows in value</b></li></ul><p id="c550">This month’s dividend is $0.726 per share, or the equivalent of a 30% annual yield. That’s incredible.</p><figure id="9d77"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*_6jLcPjGBhKfaR9o1ES0YA.png"><figcaption>Screenshot of <a href="https://www.nasdaq.com/market-activity/etf/bito/dividend-history">Nasdaq.com</a> BITO dividend history</figcaption></figure><h2 id="ccf2">How I made$ 1,320 this past month from this ETF alone</h2><div id="be9a"><pre>Approximate starting <span class="hljs-keyword">value</span> <span class="hljs-keyword">of</span> BITO holding <span class="hljs-keyword">as</span> the <span class="hljs-keyword">start</span> <span class="hljs-keyword">of</span> February:

Growth <span class="hljs-keyword">of</span> BITO price <span class="hljs-keyword">in</span> February:

<span class="hljs-number">44.64</span>%

Total Value <span class="hljs-keyword">at</span> <span class="hljs-keyword">end</span> <span class="hljs-keyword">of</span> February:

Total Earnings:

the <span class="hljs-variable">$80<

Options

/span> dividend <span class="hljs-keyword">next</span> week!

</pre></div><figure id="21aa"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*qBZiFD_Et45iM1K0X4fMSQ.png"><figcaption>Screenshot of <a href="https://share.acorns.com/bnaxler">Acorns Dashboard</a> by <a href="https://medium.com/@ethanginsberg">Ethan Ginsberg</a></figcaption></figure><h2 id="5978">The crazy thing is, anyone who has an Acorns account and is invested in BITO is getting these same results and probably doesn’t even realize it!</h2><p id="8d48">If you would like to jump in on the action and get started investing with Acorns today, check out my <a href="https://share.acorns.com/bnaxler">affiliate link to to $5 free with your first investment</a>!</p><h1 id="9026">About the Author — ME!😎</h1><p id="6f2b">I’m Ethan Ginsberg, I am a San Francisco Bay Area non-stereotypical tech employee who’s always looking for ways to build my path to financial freedom. 🤑💰 I love sharing passive income ideas and bragging about all the ways I have failed miserably and learned from those failures. 💪</p><p id="328b">Check out the <a href="https://medium.com/brag-board">Brag Board publication</a> for more stories about trials, tribulations, wins, losses and all the money gained and lost along the way!</p><div id="0016" class="link-block"> <a href="https://readmedium.com/from-5-to-35-000-my-journey-with-acorns-and-the-power-of-small-investments-ab50ebc4b815"> <div> <div> <h2>From$ 5 to $35,000: My Journey with Acorns and the Power of Small Investments</h2> <div><h3>How Investing as Little as$ 5 a Week Transformed My Financial Future</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*esHJbSLmiIiBuhRLaw2_zQ.png)"></div> </div> </div> </a> </div><div id="004f" class="link-block"> <a href="https://readmedium.com/i-was-making-passive-income-for-years-and-i-had-no-idea-heres-how-044b1149e691"> <div> <div> <h2>I Was Making Passive Income For Years and I Had No Idea — Here’s How</h2> <div><h3>As I combed through the new dashboard, I saw something strange</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*W8VUdsBwbmmu_5Dj)"></div> </div> </div> </a> </div></article></body>

I Made $1,339 This Past Month on an ETF that Pays a 30% Dividend (and No One’s Talking About It)

Image generated by Dall.e 3 — Prompt by Author

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What if I told you I made $1,339 this past month from a $3,000 investment and I’m going to be getting approximately an $80 monthly dividend later this week?

Too good to be true?

Well, a ton of people are getting the same results and they probably don’t even know it.

It all started with $5

I always love to talk about Acorns in my articles.

Acorns is a robo-investor app that makes getting started with investing incredibly easy for as little as $1 per month.

I have been using Acorns to invest since 2018.

To learn more about my investing journey on Acorns check out how I grew $5 to $35,000. Since writing the article, that portfolio has ballooned to more than $46,000. Mostly thanks to what I am about to tell you about.

The magical ETF that pays a 30% dividend

At its core (pun intended) Acorns works by assessing your risk profile and investing your money in about 5 ETFs (Exchange Traded Funds).

Here are the 5 funds Acorns has my money invested in:

In the past, there were 5 standard ETFs that tracked stock indexes, but about two years ago they introduced the option to add an ETF that tracked the price of Bitcoin.

Yes, two years before all this hoopla with the SEC and Bitcoin ETFs, there was already an ETF that tracked the price of BTC.

There’s a big difference between the BITO ETF and the new BTC ETFs though.

The BITO ETF only tracks the futures of Bitcoin’s price
It does not own any Bitcoin to back its price
It’s not guaranteed to follow the exact price or percentage fluctuations of BTC

Here’s the kicker though:

Since the ETF is buying and selling contracts, the fund is making money when BTC rises in value and they sell a contract that’s more valuable than when they purchased it.

This leads to a taxable event for the ETF which they offset by returning the capital to investors in the form of a monthly dividend.

When the price of BTC goes down from month-to-month, the dividend will be very small or non-existent.
When the price of BTC goes up, the dividend grows in value

This month’s dividend is $0.726 per share, or the equivalent of a 30% annual yield. That’s incredible.

Screenshot of Nasdaq.com BITO dividend history

How I made $1,320 this past month from this ETF alone

Approximate starting value of BITO holding as the start of February:

$3,000

Growth of BITO price in February:

44.64%

Total Value at end of February:

$3,000 x 1.4464 = $4,339

*******

Total Earnings:

$4,339 - $3,000 = $1,339


+ the $80 dividend next week!

Screenshot of Acorns Dashboard by Ethan Ginsberg

The crazy thing is, anyone who has an Acorns account and is invested in BITO is getting these same results and probably doesn’t even realize it!

If you would like to jump in on the action and get started investing with Acorns today, check out my affiliate link to to $5 free with your first investment!

About the Author — ME!😎

I’m Ethan Ginsberg, I am a San Francisco Bay Area non-stereotypical tech employee who’s always looking for ways to build my path to financial freedom. 🤑💰 I love sharing passive income ideas and bragging about all the ways I have failed miserably and learned from those failures. 💪

Check out the Brag Board publication for more stories about trials, tribulations, wins, losses and all the money gained and lost along the way!

From $5 to $35,000: My Journey with Acorns and the Power of Small Investments

How Investing as Little as $5 a Week Transformed My Financial Future

medium.com

I Was Making Passive Income For Years and I Had No Idea — Here’s How

As I combed through the new dashboard, I saw something strange

medium.com