Aniket Pujari
REX Shares has launched the REX Bitcoin Corporate Treasury Convertible Bond ETF.
This will be a fund that invests in convertible bonds issued by companies that hold Bitcoin (BTC) in their corporate treasury, according to a company release.
Convertible bonds are a type of debt that can be converted into company shares under certain conditions. Some companies use these bonds to raise money and buy Bitcoin for their balance sheets.
The strategy gained attention after Michael Saylor, now Chairman of Strategy (formerly MicroStrategy), used it to accumulate Bitcoin.
BMAX simplifies access to this investment approach by packaging these bonds into an exchange-traded fund. ETFs allow investors to buy a basket of assets in one trade, similar to stocks. Instead of purchasing individual convertible bonds, investors can buy shares of BMAX to gain exposure to companies using this method.
“BMAX is the first ETF giving retail investors and investment advisors access to convertible bonds issued by companies integrating Bitcoin into their financial strategy,” said Greg King, CEO of REX Financial.
Exposure to Bitcoin
The fund focuses on companies like Strategy, which has issued multiple Bitcoin-backed convertible bonds. Investors in BMAX gain exposure to both the debt and potential equity upside of these companies while avoiding direct Bitcoin ownership. This provides an alternative way to engage with Bitcoin-linked investments without holding the asset itself.
BMAX offers a regulated path to participate in this strategy, removing the complexities of sourcing individual bonds or managing Bitcoin transactions.
