Companies
OranjeBTC Launches Bitcoin-Backed Digital Credit ETF DIGY11 on Brazil's B3 Exchange
OranjeBTC, a Bitcoin treasury company, has launched the Digital Yield ETF (DIGY11) on Brazil's primary securities exchange, B3. This innovative fund is the first of its kind globally, allowing investors to earn income through preferred equity in U.S. companies that hold significant Bitcoin reserves.
Unlike traditional ETFs, DIGY11 does not directly hold Bitcoin but instead invests in preferred shares of companies like Strategy (STRC) and Strive (SATA), which have adopted corporate Bitcoin treasury strategies. Notably, STRC constitutes approximately 95% of the fund's initial holdings.
Yield and Management Details
The ETF targets an annual return between CDI + 3% and CDI + 5%, with Brazil's CDI benchmark rate currently around 14.15%. This translates to a gross yield of approximately 17% to 19% per year. Monthly distributions will be made in Brazilian reais, with management fees set at 0.90% and total estimated costs around 1.30%.
Partnerships and Institutional Backing
OranjeBTC collaborated with MarketVector, the index arm of the VanEck group, for the ETF's creation. Asset manager 3R Investimentos oversees fund operations, while Banco Daycoval and Itaú BBA provide additional institutional support. OranjeBTC has built a substantial Bitcoin position, holding an estimated 3,700 to 3,900 BTC as of mid-2026.
Significance for Brazil's Crypto Market
Brazil has emerged as a crypto-friendly nation, having established a regulatory framework for digital assets in 2023. The introduction of DIGY11 represents a new category of investment, distinct from spot trackers and futures wrappers, focusing instead on yield products linked to Bitcoin-heavy companies.
However, the fund's concentration risk is notable, with a significant portion of its assets tied to the financial health of Strategy. As such, the performance of DIGY11 will closely mirror that of its primary holdings.
FAQ
What is the DIGY11 ETF?
DIGY11 is the Digital Yield ETF launched by OranjeBTC on Brazil's B3 exchange, allowing investors to earn income through preferred equity in U.S. companies that hold significant Bitcoin reserves.
How does DIGY11 differ from traditional ETFs?
Unlike traditional ETFs, DIGY11 does not directly hold Bitcoin but invests in preferred shares of companies that have adopted corporate Bitcoin treasury strategies, such as Strategy (STRC) and Strive (SATA).
What is the expected annual return for DIGY11?
The ETF targets an annual return between CDI + 3% and CDI + 5%, which translates to a gross yield of approximately 17% to 19% per year based on Brazil's CDI benchmark rate.
Who manages the DIGY11 ETF?
The fund operations are overseen by asset manager 3R Investimentos, while OranjeBTC collaborated with MarketVector for the ETF's creation and received institutional support from Banco Daycoval and Itaú BBA.
What are the risks associated with investing in DIGY11?
The fund carries concentration risk, as a significant portion of its assets is tied to the financial health of Strategy (STRC), meaning the performance of DIGY11 will closely mirror that of its primary holdings.