REX Shares has introduced the REX Bitcoin Corporate Treasury Convertible Bond ETF.
This fund will invest in convertible bonds issued by firms that maintain Bitcoin (BTC) in their corporate treasury, as stated in an official announcement.
Convertible bonds represent a form of debt that can be converted into shares of the issuing company under specific conditions. Many companies utilize these bonds to raise capital and acquire Bitcoin for their balance sheets.
This investment strategy gained popularity after Michael Saylor, the current Chairman of Strategy (formerly MicroStrategy), employed it to accumulate Bitcoin.
BMAX simplifies access to this investment method by bundling these bonds into an exchange-traded fund. ETFs enable investors to purchase a collection of assets in a single transaction, akin to buying stocks. Instead of acquiring individual convertible bonds, investors can purchase shares of BMAX to gain exposure to companies leveraging this approach.
“BMAX is the first ETF providing retail investors and financial advisors access to convertible bonds from companies incorporating Bitcoin into their financial strategies,” remarked Greg King, CEO of REX Financial.
Exposure to Bitcoin
The fund concentrates on companies like Strategy, which has issued several Bitcoin-backed convertible bonds. By investing in BMAX, participants gain exposure to both the debt and potential equity appreciation of these firms while sidestepping direct Bitcoin ownership. This offers an alternative means to engage with Bitcoin-related investments without possessing the asset itself.
BMAX provides a regulated avenue to participate in this strategy, alleviating the challenges associated with sourcing individual bonds or managing Bitcoin transactions.