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OranjeBTC to launch monthly income bitcoin treasury ETF in Brazil

The DIGY11 ETF plans a 0.90% management fee and aims for monthly income linked to Brazil’s CDI plus 3.0% to 5.0%, using monthly FX forwards to hedge dollar exposure.

Reported · Written up by our desk · Bitcoin

OranjeBTC, Brazil’s largest bitcoin treasury firm, is preparing to launch the DIGY11 monthly income ETF on B3 in Brazil’s local fiat currency, the real, CoinDesk reports.

The fund’s initial portfolio is set to allocate 95% to Strategy’s STRC preferred shares and 5% to Strive’s SATA equivalent, both of which pay recurring U.S. dollar distributions. OranjeBTC says the bitcoin held in its balance sheet is not pledged to the preferred shareholders.

DIGY11 is designed to hedge dollar exposure via one-month foreign-exchange forwards that are rolled monthly and rebalanced quarterly. The ETF will charge a 0.90% management fee and is expected to begin trading in early September.

OranjeBTC, which holds 3,950 BTC (about $250 million), expects annual distributions to track Brazil’s risk-free rate, the CDI, of 14.15%, plus roughly 3.0% to 5.0% net of an estimated 1.30% total cost, CoinDesk adds. The firm also notes the calculation excludes price changes in DIGY11 and does not guarantee investor returns.

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