Brazilian ETF DIGY11 Debuts as US Bitcoin ETFs Post USD 450M Outflows

OranjeBTC's DIGY11, a fund that provides Brazilian investors with indirect exposure to Bitcoin-treasury companies, began trading on B3 on September 15. This debut came at a time when US Bitcoin ETFs experienced significant outflows, totaling USD 450.4 million.

The fund does not hold Bitcoin directly but rather follows a Brazilian real-hedged MarketVector index built around preferred shares from companies with substantial Bitcoin reserves. These shares are represented by STRC and SATA, perpetual variable-rate preferred securities that are sensitive to dividend policies, issuer capital structures, market conditions, and the effect of Bitcoin on these companies' balance sheets.

The portfolio of DIGY11 is dominated by Strategy's STRC preferred shares at 74.29%, with Strive's SATA preferred shares making up 4.88% and cash and currency-hedge margin accounting for 20.83%. This structure raises questions about how closely a fund tied to Bitcoin-treasury companies can move with Bitcoin without holding the asset itself.

Meanwhile, US spot Bitcoin ETFs saw net outflows of USD 450.4 million on Tuesday after taking in USD 159.9 million the previous day. Fidelity's FBTC led redemptions with USD 214.8 million, followed by BlackRock's IBIT with USD 161.7 million.

Bitcoin traded near USD 75,900 during this period and continued to experience selling pressure across the broader cryptocurrency market. The Digital Asset Market CLARITY Act also failed to advance in the US Senate, falling short of the required 60 votes despite incorporating changes requested by Democrats.