OranjeBTC Unveils DIGY11 ETF with Monthly Income Focus

OranjeBTC is preparing to launch DIGY11, an exchange-traded fund (ETF) on Brazil's B3 exchange that targets monthly income from Bitcoin-linked preferred stocks. The product would allow local investors to access recurring U.S. dollar distributions without directly holding the securities.

The ETF plans to allocate 95% of its portfolio to Strategy's STRC preferred stock, which currently offers a 12.5% yield. The remaining 5% will go into Strive's SATA preferred stock, yielding about 13.1%. OranjeBTC expects DIGY11 to distribute income equal to Brazil's 14.15% Interbank Deposit Certificate rate, plus three to five percentage points.

The fund aims to reduce currency risk by using one-month foreign-exchange forwards and rolling the contracts monthly. It will rebalance the hedge every quarter. OranjeBTC expects DIGY11 to begin trading in early September, although a final listing date has not been announced.