OranjeBTC Launches Brazil's First Digital Yield ETF, Targets CDI Plus 3-5%

Brazil's largest bitcoin treasury firm, OranjeBTC, is launching an exchange-traded fund (ETF) called DIGY11 that will initially allocate 95% of its portfolio to Strategy's STRC preferred shares and 5% to Strive's SATA. The goal is for the ETF to distribute income monthly, targeting a yield equivalent to Brazil's risk-free rate, the Interbank Deposit Certificate (CDI), plus 3-5 percentage points.

The DIGY11 ETF will be listed on Brazil's B3 exchange in early September and will charge a 0.90% management fee. OranjeBTC plans to hedge dollar exposure through one-month foreign-exchange forwards rolled monthly and rebalanced quarterly.

OranjeBTC holds approximately $250 million worth of Bitcoin, but the company's Bitcoin remains on its balance sheet and is not pledged to preferred shareholders. The STRC and SATA companies pay recurring U.S. dollar distributions with yields currently at 12.5% and 13.1%, respectively.