OranjeBTC launches Bitcoin-linked ETF on Brazil's main stock exchange

OranjeBTC, a Brazilian Bitcoin treasury company, has launched a new exchange-traded fund on B3 with a monthly income strategy tied to companies that hold substantial Bitcoin reserves.

The ETF, known as DIGY11, began trading Tuesday and represents OranjeBTC's first financial product outside its own Bitcoin treasury strategy. Itaú BBA is responsible for structuring and distributing the fund.

Rather than purchasing Bitcoin directly, DIGY11 invests in preferred shares issued by Strategy through STRC and Strive through SATA. The securities are designed to generate recurring dollar payments, which the ETF converts into reais for monthly distributions.

The fund will use currency hedging and provide daily liquidity on B3. OranjeBTC estimates that, under current market conditions, the potential return could equal CDI plus 3% to 5% per year, although the company stresses that the estimate is not a guaranteed return and does not account for changes in the ETF's share price.

The launch is expected to be the first of several products from OranjeBTC. CEO Guilherme Gomes said the company is already working on other products, including potential new ETFs, although no future product has been finalized. He said DIGY11 aims to provide another entry point into the Bitcoin economy for investors seeking income without directly holding BTC, extending OranjeBTC's focus from its corporate Bitcoin holdings into capital-market products.

3R Investimentos manages the fund, while MarketVector, part of the VanEck group, calculates its index and Banco Daycoval provides fiduciary administration. The ETF carries a 0.9% annual management fee.