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@ d293dec8:009c2c3f
2025-05-02 01:43:54
BITCOIN ETFs. They are not at all like owning bitcoin in self custody, witch I reccomend. But ETFs do have massive benefits. I will give you just one example that I helped organize in the wealth advisory firm where I work.
We had a client come in and want to buy 1 million in bitcoin. A million from the sale of a rental property. He had a fairly large stock portfolio and largely lived on capital gains and some dividends from that portfolio. He made about 150k in capital gains per year.
We put the man in one of the 5 big Bitcoin ETFs when BTC was trading at $ 95,000. Once we did, I told him that one possibile senerio is that it could drop 20% or so. I explained that this was volatile. I told him that If it dropped, we would dump it for a loss and emmediatly choose another "better managed" ETF, to place the money into.
Bitcoin dropped to 78k and we dumped that ETF and placed the money into another ETF, harvesting a $170k loss. 30 days later, the client has washed ALL his capital gain income for the year and in good shape to capture the upside of bitcoin because bitcoin was back up to 95k . Also, the bonus to this bitcoin story, is that this has got him into studying self custody, hard, and hot wallets.