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

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

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

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

“Till now, these bonds have been troublesome for particular person traders to succeed in,” he stated. “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 web site. Other than Technique’s convertible notes, which account for 81% of the fund’s publicity, the fund accommodates 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 worth rises above a sure market worth.

The fund is actively managed, and REX stated it might make investments as much as 20% of its belongings in equities issued by corporations 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 presently presents leveraged ETFs offering 2x lengthy or brief 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 effectively, together with President Donald Trump’s meme coin on Solana, BONK, and Dogecoin.

Edited by James Rubin