The NEOS Bitcoin High Income ETF (NYSEARCA:BTCI) has recently dropped to a new 52-week low, trading as low as $30.89 before settling at $31.20 during mid-day trading on Tuesday. This decline, which marks a 2.4% decrease from its previous close of $31.67, raises significant questions for current and potential investors.
With a trading volume of 130,541 shares, BTCI”s performance is notably lower than its fifty-day simple moving average of $41.09 and its 200-day simple moving average of $50.54. These figures suggest a troubling downward trend for the ETF, which primarily invests in long Bitcoin positions while shorting USD currency.
Recent institutional activity indicates mixed sentiment regarding BTCI. For instance, IFP Advisors Inc has significantly increased its stake by 341.1% during the fourth quarter, now holding 741 shares valued at approximately $33,000. This acquisition involved purchasing an additional 573 shares during the period.
Other firms have also shown interest; Steward Partners Investment Advisory LLC and AE Wealth Management LLC purchased new positions valued around $34,000 and $35,000, respectively. Additionally, Capital Investment Advisory Services LLC and CWM LLC have also acquired stakes, with CWM”s holdings growing by 224.4% in the third quarter to 1,223 shares valued at roughly $73,000 following an increase of 846 shares.
The NEOS Bitcoin High Income ETF, launched on October 17, 2024, seeks to provide high monthly income and potential appreciation through investments in exchange-traded products (ETPs) with Bitcoin exposure, while also employing call option strategies. As investors navigate this recent downturn, the question remains: is it time to sell or hold for a potential rebound?
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