Brazil's B3 stock exchange has listed OranjeBTC's DIGY11, an exchange-traded fund holding preferred shares from Bitcoin-treasury companies Strategy and Strive. The fund offers investors exposure to Bitcoin-related corporate preferred shares without direct Bitcoin ownership.
DIGY11 is not a spot Bitcoin ETF and does not track Bitcoin's price. Instead, it follows a Brazilian real-hedged MarketVector index of preferred shares issued by companies with substantial Bitcoin holdings on their balance sheets.
Trading Delayed, Portfolio Details
B3 delayed secondary-market trading from its planned September 11 start date at the fund manager's request. As of September 15, the fund displayed a net asset value of R$10.04 per unit, with R$27.5 million in net assets reported for September 11.
The fund's portfolio is heavily concentrated in Strategy's preferred stock (STRC), which accounted for 74.29% of disclosed assets as of September 11. Strive's SATA preferred shares comprised 4.88%, while 20.83% consisted of cash in reais and margin allocated to currency hedging.
Security Terms and Fund Structure
STRC and SATA are perpetual, variable-rate preferred securities. Their value depends on the issuers' dividend policies, capital structures, and market conditions, including Bitcoin's effect on the companies' balance sheets. Strategy and Strive do not pledge their Bitcoin holdings as segregated collateral for these preferred shares.
Strategy's August filing disclosed a 12% annualized STRC rate with semi-monthly payments. Strive's SATA pays on business days following monthly board declarations. Both rates can change and neither constitutes a guaranteed return.
Costs and Returns
DIGY11 aims to make monthly distributions in reais when applicable. The fund charges a 0.90% annual management fee and at least 0.055% annually for administration and custody, before other possible expenses.
OranjeBTC presents a potential annual return range of Brazil's CDI interbank benchmark rate plus 3% to 5%, labeled as an illustrative estimate that excludes changes in the fund's unit value. The product page specifies that returns and distributions are not guaranteed and that the fund has no FGC protection.
