Introduction to DIGY11
OranjeBTC, a Brazilian firm specializing in Bitcoin treasury management, is gearing up to launch a new income-generating exchange-traded fund (ETF) named the Digital Yield ETF (DIGY11) on B3, the country’s main stock exchange, in early September. This innovative product aims to provide Brazilian investors with access to preferred shares from U.S.-based Bitcoin treasury companies, notably focused on investments in Strategy and Strive.
Fund Structure and Strategy
The DIGY11 ETF will distribute returns to its investors in Brazilian reais, adding a layer of currency hedging against its exposure to U.S. dollars. According to the company’s announcement, the fund’s portfolio is likely to be predominantly comprised of preferred shares from Strategy, specifically its STRC stock, which is expected to account for an overwhelming 95% of DIGY11’s assets, while the remainder will feature Strive’s SATA shares.
Notably, the ETF will not directly hold Bitcoin. Instead, it will track the MarketVector Bitcoin Treasury Preferred Equity BRL Hedged Index, which is designed to select preferred shares from companies with significant Bitcoin reserves. This index evaluates several factors such as liquidity, Bitcoin holdings, leverage, and historical distribution performance.
Expected Returns and Management
OranjeBTC anticipates that the ETF will generate annual distributions approximately equivalent to “CDI plus an extra 3% to 5%”, although it stresses that this is an estimation that does not consider fluctuations in the ETF’s market price. The fund will impose a management fee of 0.90% annually, with total estimated costs reaching around 1.30%.
The management of DIGY11 will be undertaken by 3R Investimentos, while MarketVector will maintain the fund’s benchmark and Banco Daycoval will oversee fiduciary operations. As the product’s architect and anchor investor, OranjeBTC will play a crucial role in guiding the ETF to market.
Dividend Insights
There has been a slight update regarding the anticipated dividend rate for Strategy’s STRC shares, which is now cited as 12% for August, a minor adjustment from earlier reports that indicated a higher rate. This dividend is variable and may change on a monthly basis. Additionally, it’s important to note that Strategy’s preferred securities do not have collateral tied to Bitcoin and future dividend distributions are not guaranteed. Despite trading below its nominal value of $100, STRC has maintained a stable dividend payment every two weeks after a transition approved by shareholders.
Conversely, Strive’s SATA currently enjoys a higher annualized dividend rate of 13%, with reports confirming that the company had successfully issued cash payments for 44 consecutive business days as of early August, having transitioned to daily distributions earlier in the summer.
Market Context and Future Prospects
The introduction of DIGY11 represents a strategic expansion for OranjeBTC, marking its second foray into the public markets following a reverse merger last year. With an initial treasury of 3,650 BTC, OranjeBTC allows investors regulated access to Bitcoin-related assets without holding Bitcoin directly. Brazil’s investment landscape is well-established for crypto assets, as evidenced by a portfolio of crypto funds and ETFs accumulating a robust R$13.7 billion among around 576,000 investors in April 2025.
The DIGY11 ETF is poised to offer daily liquidity and consistent monthly distributions, with ongoing disclosure of its holdings and net asset value. Should new Bitcoin treasury preferred stocks meet the relevant criteria, they could also be included in the ETF to enhance its portfolio. Key factors influencing returns after its launch will include fluctuations in STRC and SATA pricing, future dividend adjustments, currency hedging costs, and potential changes in asset allocations.
