B3 Lists DIGY11 ETF Tracking Bitcoin Treasury Preferred Shares
Brazil's stock exchange, B3, now hosts DIGY11, a new ETF that tracks Bitcoin treasury preferred shares. OranjeBTC's product page for DIGY11 announced on September 15 that it was 'now on B3' and had a value of R$10.04 per unit. This means Brazilian investors can access a fund tied to Bitcoin-treasury companies without directly buying Bitcoin.
DIGY11 is not a spot Bitcoin ETF, aiming instead to match the price of preferred shares issued by companies with substantial Bitcoin holdings. The ETF follows a Brazilian real-hedged MarketVector index and has a portfolio concentrated in Strategy's STRC preferred stock, which accounts for 74.29% of assets.
Strategy and Strive, the two US-based Bitcoin-treasury companies represented in DIGY11, do not pledge their Bitcoin as collateral for these preferred shares. The value of the preferred shares depends on the issuers' dividend policies, capital structures, and market conditions, including the effect of Bitcoin prices on their balance sheets.
Strategy's STRC has an annualized rate of 12% and declared semi-monthly payments, while Strive's SATA pays monthly after board declarations. OranjeBTC presents a potential annual return of CDI plus 3% to 5%, but notes this is only an illustrative estimate and excludes changes in DIGY11's unit value.