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New ETF Offers Retail Access to Bitcoin-Backed Convertible Bonds

The REX Bitcoin Corporate Treasury Convertible Bond ETF focuses on debt issued by firms like Strategy, enabling individual investors to participate in a market previously dominated by institutions.

REX Shares has launched a first-of-its-kind convertible-bonds exchange-traded fund (ETF). (Unsplash)
Michael Saylor bitcoin BTC strategy REX
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Overview

  • The REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX) launched on Nasdaq with $25 million in assets under management.
  • The fund primarily focuses on convertible bonds issued by Strategy, the largest corporate holder of Bitcoin, which makes up 81% of its holdings.
  • Convertible bonds allow investors to earn interest and potentially convert the debt into stock if the issuing company's share price surpasses a specified threshold.
  • Other holdings include bonds from Bitcoin miners Marathon Digital and Riot Platforms, with up to 20% of assets potentially allocated to equities of Bitcoin-focused firms.
  • The ETF aims to make Bitcoin-backed convertible bonds accessible to retail investors, a market historically limited to institutional players.