Brazil’s largest bitcoin treasury firm plans ETF with 95% allocation to Strategy's STRC

OranjeBTC

OranjeBTC, recognized as Brazil's largest Bitcoin treasury firm, is making a significant move into the exchange-traded fund (ETF) market. The firm currently holds a substantial 3,950 BTC, valued at approximately $250 million, underscoring its deep involvement in the digital asset space. This strategic expansion into ETFs aims to provide Brazilian investors with a new avenue for exposure to Bitcoin-related assets through a regulated and income-generating product.

The firm's strategy for the new ETF involves a substantial allocation to preferred shares of other companies that maintain significant Bitcoin treasuries. Specifically, OranjeBTC plans to invest 95% of the ETF's portfolio in Strategy's (MSTR) preferred stock, STRC, and the remaining 5% in Strive’s (ASST) equivalent, SATA. These preferred shares are known for paying recurring U.S. dollar distributions, with current yields reported at 12.5% for STRC and 13.1% for SATA, offering an attractive income component to the fund.

DIGY11

The new ETF, named Digital Yield ETF or DIGY11, is slated to trade on Brazil’s B3 exchange, with transactions conducted in the country's fiat currency, the real. A key feature of DIGY11 is its commitment to distributing income on a monthly basis, providing a steady stream of returns to investors. This structure is designed to appeal to those seeking regular payouts from their crypto-adjacent investments.

OranjeBTC anticipates that the annual distributions from DIGY11 will be equivalent to Brazil’s risk-free rate, the Interbank Deposit Certificate (CDI), which currently stands at 14.15%, plus an additional 3–5 percentage points. This target is net of the fund’s estimated total cost of 1.30%. However, the firm explicitly states that this estimate depends on the preferred-share distributions and the interest-rate difference between Brazil and the U.S., and it does not guarantee actual returns, excluding changes in DIGY11’s share price.

To manage currency risk, OranjeBTC plans to hedge DIGY11’s dollar exposure through one-month foreign-exchange forwards, which will be rolled monthly and rebalanced quarterly. The fund will charge a 0.90% management fee, with 3R Investimentos managing the portfolio and MarketVector maintaining the benchmark index. This robust operational framework aims to ensure stability and transparency for investors.

Brazil's B3

Brazil already boasts a well-established and active market for listed crypto products, indicating a receptive environment for new offerings like DIGY11. As of April 2025, crypto funds and ETFs in Brazil collectively held 13.7 billion reais, equivalent to approximately $2.6 billion, distributed among 576,000 investors. This significant market presence underscores the demand for regulated crypto investment vehicles within the country.

While similar products exist outside the U.S., such as the 21Shares Strategy Yield ETP listed on European exchanges, which holds $17.6 million and reinvests distributions, DIGY11's focus on monthly payouts in Brazilian real offers a distinct value proposition. U.S. exposure to such preferred securities is often found within broader preferred-stock funds, like VanEck’s $2.44 billion PFXF, which allocates about 10% of its portfolio to four Strategy preferred securities. DIGY11's direct, income-focused approach tailored for the Brazilian market differentiates it.

OranjeBTC expects DIGY11 to commence trading in early September, although a firm listing date has not yet been set. The introduction of this ETF further solidifies Brazil's position as a leader in offering diverse and sophisticated crypto investment products, catering to a growing investor base seeking both exposure to digital assets and regular income streams.