Brazilian cryptocurrency firm OranjeBTC is preparing to list a monthly income exchange-traded fund (ETF) that will invest heavily in preferred stock of two U.S.-based companies, Strive and Strategy. The initial allocation for DIGY11 will be 95% in STRC and SATA preferred stock, with the remainder in SATA equivalent. DIGY11 will trade on Brazil’s B3 exchange.
The ETF plans to distribute income monthly, benefiting from the current yields of 12.5% from STRC and 13.1% from SATA. OranjeBTC holds approximately 3,950 BTC ($250 million). The estimated annual distribution for DIGY11 would be close to Brazil’s risk-free rate (CDI) of 14.15%, plus roughly 3-5 percentage points.
OranjeBTC Director of Strategy and Research Sam Callahan noted that the ETF will trade on B3 in Brazil’s fiat currency, the real, with changes in DIGY11’s share price excluded from income distribution guarantees.
Written by Oliver Grant
Markets Desk
