Brazil’s B3 gets DIGY11, a new ETF tracking Bitcoin treasury preferred stock

OranjeBTC’s DIGY11 product page on Sept. 15 marked the exchange-traded fund as “now on B3” and displayed a value of R$10.04 per unit. Its updated status signaled that Brazilian investors could access a fund tied to Bitcoin-treasury companies without buying Bitcoin itself.

DIGY11 is not a spot Bitcoin ETF and does not seek to match Bitcoin’s price. It follows a Brazilian real-hedged MarketVector index of preferred shares issued by companies whose balance sheets include substantial Bitcoin holdings.

B3, Brazil’s stock exchange, said that secondary-market trading would not begin as planned on Sept. 11, at the fund manager’s request. DIGY11’s product page later reported R$27.5 million in net assets and a R$10.00 net asset value per unit for Sept. 11, separate from the R$10.04 value displayed on Sept. 15.

What investors are buying

The fund’s disclosed Sept. 11 portfolio was concentrated in Strategy, the largest of the two US Bitcoin-treasury companies represented. STRC, Strategy’s preferred stock, accounted for 74.29% of assets. Strive’s SATA preferred shares made up 4.88%, while 20.83% was cash in reais and margin allocated to the currency hedge.

STRC and SATA are perpetual, variable-rate preferred securities. Their value depends on the issuers’ dividend policies, capital structures, and market conditions, including the effect of Bitcoin prices on the companies’ balance sheets.