OranjeBTC to Launch Monthly Income ETF on B3

Brazilian bitcoin treasury company OranjeBTC has announced plans to launch a new exchange-traded fund on the B3 stock exchange, designed to provide local investors with monthly income derived from U.S. bitcoin treasury firms. The fund, named the Digital Yield ETF or DIGY11, is expected to begin trading in early September, pending regulatory and listing approvals.

The ETF will not hold bitcoin directly. Instead, it will invest in preferred shares issued by U.S. companies Strategy and Strive, which maintain large bitcoin holdings on their corporate balance sheets. According to the company's announcement, the initial portfolio will be heavily concentrated in Strategy's STRC preferred stock, with the remainder allocated to Strive's SATA preferred shares. The fund aims to distribute income monthly in Brazilian reais.

OranjeBTC estimates that annual distributions could reach Brazil's interbank deposit certificate rate, known as the CDI, plus an additional three to five percentage points, net of costs. The current CDI rate is 14.15%. However, the company has emphasized that this is an estimate and actual investor returns are not guaranteed. The projection depends on the dividend...