Headline: OranjeBTC to launch income-focused ETF on B3, leaning heavily on Strategy’s STRC preferreds OranjeBTC is preparing to roll out a new income-oriented ETF on Brazil’s B3 exchange in early September that will give local investors exposure to U.S. Bitcoin-treasury preferred shares rather than to Bitcoin itself. Key facts - Fund name/ticker: Digital Yield ETF (DIGY11). - Target listing: early September on B3 (no firm first trading date announced). - Underlying holdings: preferred shares issued by U.S. Bitcoin treasury companies Strategy and Strive (STRC and SATA). - Reported concentration: media coverage (Exame) says STRC will represent about 95% of the initial portfolio; OranjeBTC’s announcement confirms STRC will be the largest holding but doesn’t publish the 95% figure. - Bitcoin exposure: DIGY11 will not hold BTC directly. It will track the MarketVector Bitcoin Treasury Preferred Equity BRL Hedged Index, which selects preferred securities of companies with large Bitcoin reserves based on liquidity, Bitcoin reserves, leverage and distribution history. - Currency and distributions: monthly payouts in Brazilian reais, with USD exposure hedged. - Estimated yield: OranjeBTC projects distributions roughly equivalent to “CDI plus approximately 3%–5%” under current conditions (this excludes changes in share price and is not a guarantee). - Fees and costs: 0.90% annual management fee; total costs estimated around 1.30%. - Managers/roles: 3R Investimentos will manage the ETF, MarketVector maintains the benchmark, Banco Daycoval handles fiduciary administration, and OranjeBTC is product creator, adviser and anchor investor. - Reporting and liquidity: expected daily liquidity, monthly BRL distributions, and daily disclosure of portfolio and NAV. Why DIGY11 is different Unlike conventional Bitcoin ETFs that directly track BTC prices, DIGY11’s returns will depend mainly on preferred-share prices, issuer distributions, currency hedging costs and fund fees. In short, investors get regulated exposure to Bitcoin balance sheets via preferred equity instruments, not to spot Bitcoin. Notes on the key holdings - Strategy’s STRC: Strategy’s own page listed STRC’s August annualized dividend rate at 12% (some early reports cited 12.5%). The rate is variable and can change monthly. Strategy states its preferred securities are not collateralized by its Bitcoin holdings and future dividends are not guaranteed. STRC pays cash distributions twice monthly after a shareholder-approved change earlier this year; Strategy maintained a 12% rate in August even when STRC traded below its $100 stated value. - Strive’s SATA: SATA currently carries an annualized rate around 13%. Strive shifted SATA to daily cash dividends at a 13% annualized rate starting June 16; the company reported 44 consecutive business-day dividend payments through Aug. 7. Context for Brazilian investors OranjeBTC has been building out beyond holding Bitcoin on its own balance sheet. The company went public last year via a reverse merger and debuted on B3 with a 3,650 BTC treasury, positioning its shares as another regulated route to Bitcoin-related exposure in Brazil. Brazil already has a sizable market for crypto investment products: B3 data showed crypto funds and ETFs held R$13.7 billion in net assets across roughly 576,000 investors as of April 2025. What investors should watch After DIGY11 launches, the fund’s performance will hinge on: - STRC and SATA market prices and any changes in their dividend rates; - hedging costs to protect BRL investors from USD moves; - portfolio weight changes and any additions to the index (the benchmark can add other Bitcoin-treasury preferred securities if they meet eligibility criteria); - fund fees and total costs. OranjeBTC’s CDI-plus projection should be viewed as an estimate, not a guaranteed return. Read more AI-generated news on: undefined/news