REX Shares has announced the launch of an innovative ETF providing access to convertible bonds of companies engaged in a Bitcoin strategy.
Features of the New ETF
Greg King, CEO of REX Financial, noted that it is typically challenging for individual investors to gain exposure to such bonds. The new ETF aims to remove these barriers. At least 80% of the fund's net assets will be invested in convertible bonds, although the policy may change without shareholder approval.
ETF Investment Strategy
The fund will include Strategy (MSTR) bonds, which account for roughly 75% of all holdings. Additionally, it will feature bonds issued by Bitcoin mining giants like Marathon Digital (MARA) and Riot Platforms (RIOT). These companies follow the debt-for-Bitcoin strategy pioneered by Strategy co-founder Michael Saylor.
Prospects and Risks for Investors
The ETF is expected to include up to 10 different issuers based on market conditions. It will not provide direct exposure to Bitcoin, and its performance might not correlate with cryptocurrency price movements. Bloomberg analyst Athanasios Psarofagis believes that a growing ETF ecosystem around Strategy is a good sign, although it might face challenges if Strategy experiences a significant correction.
Strategy's shares increased by nearly 6% this Friday, although they have declined by nearly 18% over the past month. The launch of the new ETF may offer new opportunities for investors but also carries certain risks.
