Brazil’s largest bitcoin treasury firm plans ETF with 95% allocation to Strategy's STRC
DIGY11 aims for annual distributions matching Brazil’s interbank rate plus 3–5 percentage points, net of costs, though investors' actual returns are not guaranteed.
Brazil's largest bitcoin treasury firm, OranjeBTC, is set to launch a monthly income exchange-traded fund (ETF) with a significant allocation to Strategy's preferred stock. The DIGY11 ETF will initially invest 95% of its portfolio in Strategy's preferred stock, STRC, and the remaining 5% in Strive's equivalent, SATA. Both STRC and SATA provide recurring U.S. dollar distributions, with yields currently at 12.5% and 13.1%, respectively.
The ETF aims to distribute income monthly and is planned to trade on Brazil's B3 exchange in reais. OranjeBTC expects annual distributions to be equivalent to Brazil's risk-free rate, the Interbank Deposit Certificate (CDI), of 14.15%, plus an additional 3-5 percentage points, net of the fund's estimated 1.30% total cost. The fund will hedge its dollar exposure through monthly foreign-exchange forwards.
OranjeBTC plans to hedge its dollar exposure through monthly foreign-exchange forwards rolled monthly and rebalanced quarterly. The ETF would charge a 0.90% management fee, with OranjeBTC receiving an undisclosed portion under a consulting agreement. Similar products have launched in the U.S., but OranjeBTC expects DIGY11 to receive significant attention in the Brazilian market. The ETF is expected to begin trading in early September, with no firm listing date set yet.
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