OranjeBTC, Brazil's leading bitcoin treasury firm, is preparing to launch an exchange-traded fund (ETF) called DIGY11. This fund will allocate a substantial 95% of its assets to Strategy's STRC preferred shares, while the remaining 5% will be invested in Strive's SATA shares.
DIGY11 Targets Competitive Annual Returns
The DIGY11 ETF aims to provide annual returns that align with Brazil’s interbank deposit rate, targeting an increase of 3–5 percentage points after costs. The fund intends to deliver monthly distributions equivalent to Brazil’s Interbank Deposit Certificate (CDI) rate of 14.15%, factoring in estimated costs of 1.30%. To manage dollar exposure, the ETF will utilize a hedging strategy involving monthly foreign exchange forwards and will impose a management fee of 0.90%. Trading for DIGY11 is expected to commence in early September.
Currently, the STRC and SATA shares yield 12.5% and 13.1% respectively, with both companies retaining their bitcoin holdings without using them as collateral for preferred shareholders. OranjeBTC holds 3,950 BTC, valued at approximately $250 million, and anticipates that annual distributions will depend on the performance of these preferred shares and the interest rate differences between Brazil and the U.S., as noted by Sam Callahan, the Director of Strategy and Research at OranjeBTC.
