How to borrow at 4% and invest into bitcoin ETF (with a cap)

IBIT etf tracks Bitcoin

We can use the options market to obtain the equivalent of an interest only loan, but without having to payback the notional value of the loan.

I use Leaps on IBIT. These are call options for Jan 2027

I like call spreads because it enables me to reduce my premium

Long call Jan 27 at $48

Short call Jan 27 at $60

Net premium: $350

This position gives you long exposure to Bitcoin, but it is capped at $60.

The premium is the max interest only expense all the way up to expiry Jan 27.

This premium expense equates to 4% interest.

I use other people’s money (the options market) to go long bitcoin from $48 to $60.

#ibit

#btc

$ibit