Five Dividend-paying Cryptocurrency Funds Give Investors Income

08/08/2025

A recent dip in Bitcoin prices provides investors with a discount after the Trump administration ushered in policies last month to support the cryptocurrency. With president Trump’s hand on the proverbial tiller, the cryptocurrency market is catching a figurative gust of wind, after Bitcoin hit a new high in July.

After President Donald Trump won the election in November 2024, the price of Bitcoin rose from roughly $70,000 to above $123,000 in July before dipping to $116,468.00 on Friday, Aug. 8. The ascent has not been smooth, and the latest price drop could turn into a timely buying opportunity in the days and weeks ahead for those able to accept the volatility of cryptocurrencies.

President Trump’s easing of cryptocurrency regulation has been accompanied by increasingly crypto-friendly voting in Congress, too. The latest example is last month’s passage of the GENIUS Act, which set up regulatory norms for the crypto space and solidifies a connection between crypto and the U.S. dollar with requirements for backing with U.S. treasury bills, according to the TNT Traderadvisory service led by Mark Skousen, PhD, and his son Tim Skousen.

Mark Skousen, head of TNT Trader and Forecasts & Strategies, meets with Paul Dykewicz.

Five Dividend-paying Cryptocurrency Funds Give Investors Income: Outlook

This is a great time to own a well-diversified portfolio, according to the Retirement Watch investment newsletter, with U.S. stock indexes recently reaching all-time highs. Many international stocks lately are doing even better than U.S. stocks.

Gold probably will soon break out of the trading range it has been in since late April and resume its multi-year, record-breaking bull market, while Bitcoin and related assets have bounced back from their corrections earlier this year to set new highs, wrote Retirement Watch investment newsletter leader Bob Carlson, a former pension fund chairman. He now is recommending positions in Bitcoin, even for his Retirement Watch subscribers.

Specifically, Bitcoin hit a recent low below $80,000 in early April and quickly began to recover. By mid-July it set a record high above $123,000, but currently can be bought around $116,000.

Bob Carlson heads Retirement Watch and his proprietary IRA Calculator.

Five Dividend-paying Cryptocurrency Funds Give Investors Income: Ex-Pension Chairman’s View

Several factors are behind the latest surge in Bitcoin, Carlson counseled. Exchange-traded funds (ETFs) that hold Bitcoin became available just over a year ago are experiencing increased demand, especially from U.S. investors.

The interest is propelled by favorable regulatory changes in the United States and reports that the Federal Reserve might reduce interest rates later this year, Carlson continued. In addition, more companies are adopting the approach of Strategy (NASDAQ: MSTR), formerly MicroStrategy, of turning themselves into leveraged investors in Bitcoin, he added.

Of course, rallies in Bitcoin always bring into the market new speculators who increase the upward momentum, Carlson commented.

Cryptocurrency investing is starting to attract investors of all ages, according to the Retirement Watch investment newsletter led by Carlson. He now is recommending that even subscribers to his newsletter aimed at retirees and those seeking to prepare for their non-working years consider holding a small part of their portfolios in Bitcoin.

Schwab Crypto Thematic (STCE). That ETF owns a diversified group of brokers, financial services companies, Bitcoin miners, and other firms that participate in the digital asset and blockchain economy.

It recently held 43 securities, with 59% of the ETF in its 10 largest positions. Top holdings recently were IREN, Cipher Mining, Coinbase, Cleanspark, and Hut 8.

The sector benefited when the broker Coinbase recently was added to the S&P 500.

Chart courtesy of www.stockcharts.com.

Five Dividend-paying Cryptocurrency Funds Give Investors Income: BLOK

Investors may want to buy shares in equities that are tied to cryptocurrencies like Bitcoin, blockchain technology or both. One speculative recommendation that adds alpha to the Forecasts & Strategies newsletter portfolio is Amplify Transformational Data Fund (NYSEArca: BLOK). The fund invests in crypto and blockchain technology.

BLOK invests in companies that finance cryptocurrencies and blockchain technology. TNT Trader notched an average 120.54% gain in BLOK late in 2024 by buying call options in the fund and selling them in three different segments. The exposure to blockchain technology helps the fund diversify beyond a pure play in Bitcoin.

Chart courtesy of www.stockcharts.com.

Five Dividend-paying Cryptocurrency Funds Give Investors Income: GBTC

Grayscale Bitcoin Trust (GBTC) is an open-ended trust launched and managed by the world’s biggest crypto asset manager, Grayscale Investments, LLC, to offer access to Bitcoin. GBTC invests through derivatives such as futures, swaps and other Commodity Futures Trading Commission (CFTC)-regulated products.

The company aims for aggressive growth, while dividend-paying GBTC tracks the performance of the TradeBlock XBX Index. As for trading liquidity, GBTC dominates other Bitcoin-focused funds and exchange-traded products (ETPs).

I personally recommended GBTC for the 2024 MoneyShow special report in late 2023, and it doubled during 2024 to finish as the second-best-performing investment among the more than 40 market forecasters who contributed their top ideas. GBTC rose 137.3% during 2024, following a rise of 317.61% in 2023.

However, Bitcoin also has shown significant volatility, as GBTC fell 75.0% in 2022, after rising 7.0% in 2021, 290.7% in 2020 and 106.5% in 2019. As further proof there is no guaranteed appreciation, GBTC slid 82.1% in 2019.

President Trump’s support for Bitcoin and other cryptocurrencies could help boost their value in 2025. Plus, a key reason why I recommended GBTC in December 2023 still exists. Bitcoin’s launch in 2009 called for the total supply to be limited to no more than 21 million coins. That cap avoids potential inflation of Bitcoin that remains as relevant now as it did then.

Another reason is the Securities and Exchange Commission (SEC) approving the launch of exchange-traded funds to allow trading of cryptocurrencies such as Bitcoin on the spot market like stocks and funds. That happened in January 2024, just as I predicted.

Chart courtesy of www.stockcharts.com.

“There are a lot of big and small players in cryptocurrency, and I feel like investors are entering the Wild West days of this unregulated and relatively new asset class,” said Michelle Connell, the head of Dallas-based Portia Capital Management. “No one needs to be a cowboy.”

Until further process is made on this issue, if an investor feels the need to have exposure to cryptocurrency, Connell said she would recommend allocating monies to Grayscale Bitcoin Mini Trust (BTC), an ETF that is solely and passively invested in Bitcoin.

Michelle Connell heads Dallas-based Portia Capital Management.

The fund’s investment objective is to reflect the value of Bitcoin held by the Grayscale Bitcoin Mini Trust, less expenses and other liabilities. Bitcoin’s increasing support by the Trump administration is boosting investor interest in the digital asset that is created and transmitted through the operations of the peer-to-peer Bitcoin Network, a decentralized network of computers that operates on cryptographic protocols. The Bitcoin Network allows people to exchange tokens of value called Bitcoins, which are recorded on a public transaction ledger known as a Blockchain.

“BTC gives an investor exposure to bitcoin without a direct investment in the cryptocurrency and the complexities of setting up an account,” Connell told me. “At 0.15%, the expense ratio is the one of the cheapest ways for an investor to own Bitcoin.”

With Grayscale already having more than 10 years of experience, it is one of the largest crypto managers, Connell continued. Grayscale’s Bitcoin ETF’s assets under management is now “huge” by reaching $5 billion. The fund also should offer liquidity during a financial crisis.

Chart courtesy of www.stockcharts.com.

Five Dividend-paying Cryptocurrency Funds Give Investors Income: MAXI

Simplify Bitcoin Strategy Plus Income ETF (NASDAQ: MAXI), is an interesting way for income-seeking investors to gain Bitcoin exposure, Connell said. The ETF invests in Bitcoin futures contracts, these make up over 80% of the fund, with an overlay of option strategies on equities and bonds.

Consequently, MAXI does not cap its upside on the Bitcoin futures contracts. Other Bitcoin ETF’s with covered call strategies use options written on the cryptocurrency. Thus, their upside or profits have a ceiling, Connell counseled.

MAXI currently has a dividend yield of 27%, with income paid monthly. Year to date, MAXI is up more than 25%. In 2024, it made 93%. In 2023, it jumped 145%.

“Potential investors should keep in mind that MAXI is highly volatile — just like Bitcoin,” Connell said. “It’s lost as much as 50% in the past. Therefore, I would allocate a small portion of your portfolio to this ETF only if you plan on owning it for the long run.”

MAXI is a “clever way” to own Bitcoin and make income simultaneously, said Connell. She would suggest owning this in addition to a pure bitcoin/cyber-currency play.

Chart courtesy of www.stockcharts.com.

Five Dividend-paying Cryptocurrency Funds Give Investors Income: Summary

The five dividend-paying cryptocurrency funds give income to investors, as well as potential capital appreciation. Those who are interested in cryptocurrency equities that recently have pulled back may be willing to buy now or in the near future, especially with geopolitical high as wars rage around the world and traditional U.S. equities are trading at high valuations.