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
Nav Bindra / Bastiat
npub10z…efw3d
2025-03-24 12:15:18
Author Public Key
npub10z0up5cnquw5j73km06y8y2gdjaf32zzdapj48c9cr52xc30z0cqrefw3dPublished at
2025-03-24 12:15:18Event JSON
{
"id": "9ffcdae3e05d1f94367cb8f04b6c7d02ae1848b2cac866746bcb0f15a8790b7b",
"pubkey": "789fc0d313071d497a36dbf44391486cba98a8426f432a9f05c0e8a3622f13f0",
"created_at": 1742818518,
"kind": 1,
"tags": [
[
"t",
"ibit"
],
[
"t",
"btc"
]
],
"content": "How to borrow at 4% and invest into bitcoin ETF (with a cap) \n\nIBIT etf tracks Bitcoin \n\nWe 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. \n\nI use Leaps on IBIT. These are call options for Jan 2027\n\nI like call spreads because it enables me to reduce my premium \n\nLong call Jan 27 at $48\nShort call Jan 27 at $60\n\nNet premium: $350\n\nThis position gives you long exposure to Bitcoin, but it is capped at $60. \nThe premium is the max interest only expense all the way up to expiry Jan 27. \n\nThis premium expense equates to 4% interest. \n\nI use other people’s money (the options market) to go long bitcoin from $48 to $60. \n\n\n\n#ibit \n#btc\n$ibit",
"sig": "071023573dcc38ac65794a672d56a38cc4530e43a1a21056019e847bbcf3364a7ef635db45fe82d84881b548401e8d2eb254f706e1acf1a7b35ed07bd3d1c4f9"
}