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- DIGY11 plans to put about 95% of its initial portfolio into Strategy’s STRC preferred shares.
- The Brazil-listed ETF will target monthly income while providing Bitcoin treasury exposure without directly holding BTC.
- Currency hedging and Brazilian-real trading are designed to make U.S. Bitcoin treasury securities more accessible to local investors.
Brazil’s Bitcoin investment market is set to gain a new income-focused product as OranjeBTC prepares to launch the DIGY11 ETF on the B3 exchange. Rather than holding Bitcoin directly, the fund will invest mainly in preferred shares issued by companies with significant Bitcoin treasury strategies.
The planned ETF is expected to begin trading in early September under the management of 3R Investimentos. Its structure could give Brazilian investors access to U.S.-based Bitcoin treasury companies without opening overseas brokerage accounts or directly managing foreign exchange transactions.
DIGY11 to Allocate 95% to Strategy’s STRC
The centerpiece of DIGY11 will be Strategy’s STRC preferred shares, which are expected to represent about 95% of the fund’s initial portfolio. Most of the remaining allocation is planned for Strive’s SATA preferred shares.
This approach differs from conventional Bitcoin ETFs, which typically seek direct exposure to BTC. DIGY11 instead targets the preferred-equity market surrounding companies that hold Bitcoin on their balance sheets.
The ETF will trade in Brazilian reais and provide daily liquidity. It will also use currency hedging, designed to reduce the effect of movements between the U.S. dollar and Brazilian real.
ETF Targets Monthly Income for Brazilian Investors
OranjeBTC expects DIGY11 to make monthly distributions in Brazilian reais. Based on current market conditions, the firm estimates the annualized income could reach Brazil’s CDI benchmark plus roughly 3% to 5%, after expenses and depending on market performance.
The fund will follow the MarketVector Bitcoin Treasury Preferred Equity BRL Hedged Index. Its methodology considers factors including liquidity, Bitcoin exposure, leverage, corporate reserves and previous distribution records.
The structure is designed to simplify access for local investors by combining the underlying U.S. securities, currency management and fund administration within a Brazilian-listed ETF.
STRC’s Growing Role in the Bitcoin Treasury Market
The decision to place most of DIGY11 in STRC highlights the expanding market for Strategy’s preferred securities. STRC has reportedly exceeded $10 billion in notional value, while its recent average daily trading volume has been around $160 million.
Strategy founder Michael Saylor has described the broader preferred-equity market as an emerging form of digital credit. Strive executives have similarly argued that the market is developing beyond a single-company strategy.
If DIGY11 launches on schedule, Brazilian investors will have a locally traded vehicle combining Bitcoin treasury exposure, preferred-share income and currency hedging. However, the projected returns remain dependent on market conditions, distributions from the underlying securities and the performance of the companies behind them.
Also Read: Brazil’s Central Bank Moves to Restrict Stablecoins in Cross-Border Flows—What It Means
The launch would mark another step in the international expansion of Bitcoin treasury strategies, bringing a U.S.-focused investment model into Brazil’s regulated ETF market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
