The Bitcoin Flywheel Strategy™
he Bitcoin Flywheel Strategy helps protect your money from losing value due to inflation and growing government debt. We use a scoring system to pick the best YieldMax® Option Income Strategy ETFs, which provide high monthly income. That income is then used to buy “spot” Bitcoin ETFs.
Think of it like a flywheel—steady income builds momentum to grow your Bitcoin investment over time. This strategy blends Bitcoin’s growth potential with the steady income from YieldMax ETFs, giving you a smart mix of diversification, income, and growth. The Bitcoin Flywheel Strategy combines the innovative potential of Bitcoin as the “hardest money ever invented” with high yield-enhancing capabilities of the YieldMax Option Income® ETFs. This dual-approach strategy is designed to deliver strategic diversification, income generation, and growth opportunities.
Bitcoin is a digital currency that exists beyond physical boundaries. You can’t hold it, but ownership is securely stored in a decentralized, encrypted system that no one can censor. We use a tool called a “relative strength matrix” to compare investments and focus on the strongest YieldMax® Option Income Strategy ETFs.
For some investors, Bitcoin can be a smart way to protect against inflation and the decline of traditional currency.
This strategy uses monthly income generated from YieldMax® funds to invest in “spot” Bitcoin ETFs like the iShares Bitcoin Trust ETF (IBIT).
Inspired by Michael Saylor’s vision
of Bitcoin as a wealth-preserving asset, it aligns high-yield distributions with strategic Bitcoin purchases, aiming to balance consistent income with Bitcoin’s long-term growth potential.
Relative strength helps pinpoint the best-performing ETFs while avoiding weaker ones. Adjustments may be needed during volatile markets, but all assets stay under the client’s control through a discount brokerage. Cenacle Capital Management provides separate account management (Limited Discretionary Authority) for this strategy.
Strategy Insights:
The manager will allocate an equal weighted long position to the YieldMax® Covered Call ETFs selected among those funds for their superior relative strength compared to its rivals. Relative strength measures the performance of one security in comparison to another. For example, how Microsoft is performing compared to the S&P 500, or how the U.S. Dollar is doing relative to the Euro.
Strategic Allocation:
Allocate a portion of assets to Bitcoin via institutional-grade investment vehicles similar to the iShares Bitcoin Trust (symbol: “IBIT”), Grayscale Bitcoin ETF (symbol: “GBTC” or “BTC”), or YieldMax® Bitcoin Option Income Strategy (symbol: “YBIT”).
Market Timing:
Use relative strength analysis, point & figure charting, 10-week moving averages and other technical analysis tools to optimize entry and exit points.
YieldMax® Option Income ETFs Component
▪️Yield Enhancement: Invest in YieldMax® ETFs, which use covered call strategies to generate additional income.
▪️Income Optimization: Benefit from consistent call option premiums on underlying assets.
▪️Diversification: Include YieldMax® ETFs across sectors and asset classes to balance risk and return.
COMPLETE RISK DISCOSURE AVAILABLE UPON REQUEST
Cenacle Capital Management, LLC. An Illinois State Registered Investment Advisor | Phone 847.686.4800 | [email protected]
Momentum & Relative Strength Strategy Insights
“Relative Strength” is a term used to describe a systematic structured methodology of comparing price performance of one security to another.
Directionless, narrow markets and markets with transitioning leadership tend to be periods when relative strength strategies will struggle. Relative Strength seeks to capitalize on performance differences between assets classes or within asset classes.
RISK DISCLOSURE
Risk Disclosure
There are no hypothetical return profiles for this strategy. Volatility of the strategy may be materially different from the volatility of the S&P 500 index. Relative Strength is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate. Advisor may make modifications to the strategy at any time without notification to the client. In all securities trading there is potential for profit as well as loss. You should consider this strategy’s investment objectives, risks, charges and expenses before investing.
Back-testing involves a hypothetical reconstruction based on past market data of what the performance of a particular account would have been had the advisor been managing the account using a particular investment strategy. Back-tested performance results have inherent limitations, particularly the fact that these results do not represent actual trading and may not reflect the impact that material economic conditions and market factors might have placed on the advisor’s decision-making if the advisor were actually managing the client’s money. Any results should not be viewed as indicative of the advisor’s skill and do not reflect the performance results that were achieved by any particular client. Prior to June 2020, the advisor was not providing advice using this model.
No current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals, and economic conditions may materially alter the performance of the client’s portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s portfolio.
Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results. There are no assurances that a portfolio will match or outperform any benchmark.
Cenacle Capital Management is registered as an investment advisor and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators and does not mean that the advisor has attained a level of skill or ability.
Hypothetical returns discussed use the returns of other indices. The hypothetical returns have been developed by Cenacle Capital Management and have not been verified by a 3rd party. Volatility of the strategy may be materially different from the volatility of the S&P 500 index or other indexes. (5)
There may be times where all investments and strategies are unfavorable and depreciate, and material market or economic conditions may impact the results portrayed. (1) Advisor may make modifications to the strategy at any time without notification to the client. In all securities, trading there is potential for profit as well as loss. (4) You should consider this strategy’s investment objectives, risks, charges, and expenses before investing. Back-testing involves a hypothetical reconstruction, based on past market data, of what the performance of a particular account would have been had the adviser been managing the account
using a particular investment strategy. Performance results presented do not represent actual trading using client assets but were achieved through retroactive application of a model that was designed with the benefit of hindsight. Back-tested performance results have inherent limitations, particularly the fact that these results do not represent actual trading and may not reflect the impact that material economic conditions and market factors might have placed on the adviser’s decision-making if the adviser were managing the client’s money.(7) These results should not be viewed as indicative of the adviser’s skill and do not reflect the performance results that were achieved by any particular client. Prior to June 2020, the adviser was not providing advice using this model and clients’ results were materially different. The model that gave rise to these back-tested performance results is one that the adviser is now using in managing clients’ accounts.
Performance results are not presented “net-of-fees” and do not reflect the reinvestment of dividends or the expense of commissions and transaction fees. (2,3) No current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels. The Funds are non-diversified, meaning they may concentrate its assets in fewer individual holdings than a diversified fund. Investments in smaller companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Diversification does not assure a profit or protect against a loss in a declining market. All investment strategies have the potential for profit or loss (4). Changes in investment strategies, contributions or withdrawals, and economic conditions may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s portfolio. Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results. There are no assurances that a portfolio will match or outperform any particular benchmark. Cenacle Capital Management is registered as an investment advisor and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators and does not mean that the advisor has attained a level of skill or ability.
The performance numbers on this page are price returns, not inclusive of dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits accompanied by possibility of loss. The information found on this page has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this report without obtaining specific advice from their financial advisor and should not rely on information herein as the primary basis for their investment decisions. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities or invest in the strategy. Notations reference the SEC Clover Capital No Action Letter regarding proper disclosure of risks and rewards of an investment strategy.
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Think of it like the rebel breaking free from the traditional money system. You can buy stuff, invest, and even send it across the globe without dealing with banks. It’s the poster child for the digital revolution because it cannot be as easily manipulated by the globalists.
Then there is Gold – the timeless champ. Shiny, tangible, and loved by a thousand generations. Gold has been the symbol of wealth for ages. You can wear it, hold it, and stash it away in a secret spot. It’s the bling that never goes out of style. Nothing feels better in your hand than holding a gold coin. But math shows that since 1980, it’s barely kept ahead of the rate of inflation.