OranjeBTC Introduces World's First Bitcoin-Backed Digital Credit ETF

OranjeBTC has launched the Digital Yield ETF (DIGY11) on Brazil's B3 exchange, marking the world's first Bitcoin-backed digital credit ETF. The fund holds preferred shares in companies like Strategy and Strive, which have significant Bitcoin reserves. This setup allows investors to earn income from these companies' Bitcoin holdings without directly holding the cryptocurrency.

The Digital Yield ETF targets an annual return between CDI + 3% and CDI + 5%, where CDI is Brazil's benchmark interest rate currently at around 14.15%. This translates to a gross yield of approximately 17% to 19% per year, with monthly distributions in Brazilian reais.

The management fee for the fund stands at 0.90%, with estimated total costs around 1.30%. OranjeBTC partnered with MarketVector and 3R Investimentos for this venture, while Banco Daycoval and Itaú BBA provided additional support.