Am I the only one still buying MSTY to lower my average cost basis?

The YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) has been moving steadily lower over the months. With shares now going for $15 and change per share, many investors are wondering if it’s worth it to keep buying on the way down to lower that average cost basis or if it’s better to just hang on for the ride.

In a specific case I stumbled upon on Reddit, a poster asked if they’re the only person out there that’s continuing to buy on the way down. Of course, this person may feel alone in buying MSTY shares into weakness, but they’re not. Many folks on Reddit are just content with hanging on and collecting that massive distribution payout that continues to be quite towering to this day at just north of 92%.

This individual is buying more MSTY shares as they move lower—is it a good move?

While it’s hard to come by someone on the r/YieldMaxETFs Reddit who has been doubling down, I don’t think it’s a bad decision for those who desire a risk-on, dividend-focused way to profit from continued strength in shares of Strategy (NASDAQ:MSTR | MSTR Price Prediction), a company whose fate seems closely tied to Bitcoin (CRYPTO:BTC). Indeed, Strategy’s top bosses look like geniuses for having bought Bitcoin right before it experienced a massive leg higher. And while it’s too early to tell what’s up next, I do think that the MSTY is a way for the Bitcoin bulls to score sky-high dividends from the latest ascent in Bitcoin and the like.

Given the sheer amount of Bitcoin bulls out there, I’m sure there are many who wish they could get paid real dividends (Bitcoin and other cryptos do not pay cash dividends to investors) for their crypto investment. With the MSTY, it’s possible to pad one’s passive income stream as one bets on continued strength in the top cryptocurrency.

Personally, I’m not looking for a high-income way to benefit from Bitcoin demand. However, for those who want to get paid to wait for Bitcoin’s next move, the MSTY may be the way to go. Of course, there are considerable risks to consider when building a position in the MSTY.

Dollar cost averaging can be a great way to reduce one’s risk

In any case, dollar cost averaging (DCA) into a full position over the course of many quarters seems like a smart way to reduce risks while keeping one’s cool. Not to mention one’s cost basis will decrease as shares continue to sink further into the teens and, eventually, into single-digit territory. The massive yield makes the ride well worth it, though, at least of late.

For me, the MSTY stands out as more of a niche ETF. But big believers in Bitcoin, I think, can continue to do well. The big risk, though, is how much of a haircut the distribution will get once investors and speculators shy away from trading Bitcoin and we run into the next big crypto sell-off. Undoubtedly, it’s hard to tell how much downside the shares and the distribution will be in such a scenario. In any case, it may be best to wait for such a “crypto winter” to arrive before really backing up the truck on shares of MSTY.

Finally, given the complexities involved with MSTY, I’d strongly encourage our dip-buying Reddit poster to consult the services of a financial advisor. They can provide an opinion and suggest an exposure that would be appropriate, as well as shine a light on the potential downside risks one may overlook.