REX’s BTC Treasury ETF Targets Technique’s Bitcoin-Backed Bonds

REX Shares debuted an exchange-trade fund on Friday offering publicity to Strategy’s convertible bonds, a type of debt the ETF issuer mentioned was exhausting to entry for many buyers.

The REX Bitcoin Company Treasury Convertible Bond ETF (BMAX) gives publicity to debt from three U.S. firms. Nonetheless, REX mentioned in a press release that the fund is “extremely concentrated” in merchandise supplied by Technique, the world’s largest company holder of Bitcoin.

Since Technique, previously referred to as MicroStrategy, issued its first batch of convertible senior notes in 2020, REX Monetary CEO Greg King mentioned in an announcement that retail buyers and funding advisors have lacked the identical alternatives as institutional buyers to entry these merchandise.

“Till now, these bonds have been troublesome for particular person buyers to succeed in,” he mentioned. “BMAX removes these limitations making it simpler to put money into the technique pioneered by Michael Saylor.”

The fund debuted on the Nasdaq with $24.8 million in belongings, based on REX’s website. Except for Technique’s convertible notes, which account for 81% of the fund’s publicity, the fund incorporates related merchandise issued by Bitcoin miners Marathon Digital and Riot Platforms.

Convertible senior notes are bonds that may be transformed into shares by an investor if the related firm’s inventory value rises above a sure market value.

The fund is actively managed, and REX mentioned it could make investments as much as 20% of its belongings in equities issued by firms that leverage Bitcoin as a treasury reserve asset. These could possibly be bought on a secondary market or stem from changing convertible bonds.

REX has issued ETFs centered on Technique earlier than. The corporate at the moment offers leveraged ETFs offering 2x lengthy or quick publicity to Technique’s inventory.

It has additionally filed for a number of spot crypto ETFs. Most lately the corporate filed for an ETF that would supply publicity to the value of MOVE, an Ethereum layer-2 scaling community that simply launched its mainnet earlier this week.

REX is racing to supply merchandise for meme cash as properly, together with President Donald Trump’s meme coin on Solana, BONK, and Dogecoin.

Edited by James Rubin