Rex Shares, a well-known digital investment provider, has introduced BMAX, the first ETF focused on convertible bonds from companies incorporating Bitcoin into their financial plans.
How BMAX Works
BMAX is designed for investors wanting exposure to companies using Bitcoin in their corporate treasury. The product offers a mix of debt security and potential equity growth, presenting less risk than direct Bitcoin investment. The fund is actively managed, comprising 81.21% of bonds from Strategy, a Bitcoin-focused software intelligence company. It also includes bonds from large mining companies like MARA and Riot Platforms.
Why Convertible Bonds Matter in the Digital Financial Sector?
Convertible bonds allow companies to raise funds by issuing debt that can be converted into stock later. Companies like Strategy have used this method to purchase significant amounts of Bitcoin. For instance, in February, Strategy issued $2 billion in convertible notes to acquire 20,356 BTC, increasing its holdings to 499,096 BTC.
The Rise of Bitcoin-Focused ETFs
The launch of BMAX follows Bitwise’s debut of the Bitcoin Standard Corporations ETF (OWNB), which targets companies with substantial Bitcoin reserves. Rex Shares is expanding its crypto ETF offerings, recently partnering with Osprey Funds to introduce new funds.
BMAX’s introduction to the market signifies a burgeoning interest in accessible Bitcoin exposure through traditional investment products, offering new opportunities for investors and financial advisors.
