Thomas Daniels
REX Shares has introduced the REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX), a new exchange-traded fund designed to invest in convertible bonds issued by companies that hold Bitcoin in their corporate treasuries.
Convertible bonds, a form of corporate debt, grant investors the option to convert their holdings into equity under specific conditions. Several firms leverage this mechanism to raise capital for Bitcoin acquisitions. This approach gained prominence through Michael Saylor, now Chairman of Strategy (formerly MicroStrategy), who used it extensively to build Bitcoin reserves.
BMAX streamlines investor access to this strategy by consolidating these bonds into an ETF. Rather than purchasing individual convertible bonds, investors can buy BMAX shares to gain diversified exposure to companies employing this financial model. ETFs simplify asset management by allowing investors to trade a basket of securities like stocks.
“BMAX is the first ETF providing retail investors and financial advisors with access to convertible bonds from companies incorporating Bitcoin into their financial strategy,” said Greg King, CEO of REX Financial.
Alternative Bitcoin Exposure
The ETF focuses on firms like Strategy, which has issued multiple Bitcoin-backed convertible bonds. Investors in BMAX gain exposure to both the debt and potential equity appreciation of these companies, offering an indirect way to participate in Bitcoin-related investments without directly holding the cryptocurrency.
By offering a regulated investment vehicle, BMAX removes the complexities associated with sourcing individual bonds or handling Bitcoin transactions, making this strategy more accessible to a broader range of investors.
