Key Highlights
- OranjeBTC aims to debut DIGY11 on B3, Brazil’s primary exchange, offering monthly distributions denominated in reais.
- Portfolio composition centers on 95% Strategy STRC preferred shares and 5% Strive SATA preferred shares.
- The fund seeks returns exceeding Brazil’s CDI benchmark of 14.15%, leveraging preferred-share dividends and interest-rate differentials.
- Currency hedging strategy employs monthly FX forwards to mitigate dollar-real exchange rate fluctuations.
- Early September marks the anticipated trading debut, pending final regulatory confirmation and listing approval.
OranjeBTC has outlined plans for a Brazil-domiciled exchange-traded fund designed to deliver regular income derived from Bitcoin-linked preferred stocks. The Digital Yield ETF, trading under the ticker DIGY11, will operate on the B3 exchange with transactions conducted in Brazilian reais. OranjeBTC anticipates market availability by early September, offering Brazilian investors streamlined access to U.S. preferred-stock income streams through a domestically traded vehicle.
Portfolio Strategy Centers on Dual Preferred-Stock Allocation
DIGY11’s investment approach allocates the majority position—95%—to Strategy’s STRC preferred shares. Strive’s SATA preferred stock comprises the balance at 5%, establishing dual exposure to dollar-based distribution payments.
STRC presently delivers a 12.5% annual yield, whereas SATA provides approximately 13.1%. Both issuing companies maintain Bitcoin reserves on their corporate balance sheets, though these digital asset holdings remain unencumbered relative to preferred shareholder claims.
OranjeBTC projects DIGY11 will generate distributions matching Brazil’s CDI rate of 14.15%, supplemented by an additional three to five percentage points. This projection accounts for the fund’s 1.30% aggregate annual expense ratio.
The return framework relies on preferred-share payment schedules combined with Brazil-U.S. interest-rate spreads. These estimates exclude potential market price fluctuations of DIGY11 units, with no performance guarantees provided by the fund structure.
Brazilian Digital Asset Investment Landscape Grows
Currency exposure management involves deploying one-month FX forward contracts. DIGY11 will refresh these derivative positions monthly while conducting comprehensive hedge rebalancing on a quarterly schedule.
3R Investimentos assumes portfolio management responsibilities, with MarketVector handling index construction and maintenance duties. The fund assesses a 0.90% annual management fee, from which OranjeBTC draws compensation through a consulting arrangement with undisclosed terms.
Brazil’s cryptocurrency investment infrastructure has achieved substantial scale. Crypto funds and ETFs commanded 13.7 billion reais in assets—roughly $2.6 billion—distributed among 576,000 participants as of April 2025.
OranjeBTC’s corporate treasury holds 3,950 Bitcoin valued near $250 million. The organization maintains its early September launch window for DIGY11, though precise trading commencement dates remain subject to regulatory finalization.
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