REX launches Bitcoin Corporate Treasury Convertible Bond ETF

REX Shares introduced the BMAX ETF, designed to invest in convertible bonds from companies like MicroStrategy that hold Bitcoin in their corporate treasury. This ETF offers individual investors access to a strategy previously limited to institutional investors. Convertible bonds can be converted to equity, providing indirect Bitcoin exposure. The ETF structure avoids the technical and self-custodial challenges of direct Bitcoin ownership. Michael Saylor, of MicroStrategy, popularized this corporate Bitcoin strategy, making it a significant market development. Institutional investors may prefer this indirect approach due to a lack of technical expertise or regulatory restrictions on direct digital asset holdings. Several U.S. states, including California, hold significant amounts of MicroStrategy stock within their pension funds. MicroStrategy is one of the largest corporate Bitcoin holders, currently holding almost 500,000 BTC. MicroStrategy's most recent Bitcoin purchase was in February 2024, acquiring over 20,000 BTC. This ETF facilitates exposure to the corporate Bitcoin strategy via debt instruments.