REX Shares launches ETF to track convertible bonds issued by companies like Strategy to purchase Bitcoin
|- Asset manager REX Shares launched a Bitcoin Corporate Treasury Convertible Bond ETF, BMAX.
- The fund will invest 80% of its net assets in convertible bonds issued by companies to purchase Bitcoin in their corporate treasury.
- BMAX aims to lower the barrier of entry to investing in convertible bonds issued by companies to purchase Bitcoin.
Asset manager REX Shares announced on Friday the launch of its Bitcoin Corporate Treasury Convertible Bond (BMAX) exchange-traded fund (ETF). The fund aims to grant exposure to convertible bonds issued by companies to purchase Bitcoin.
REX Shares rolls out Bitcoin Corporate Treasury ETF
REX Shares launched a first-of-its-kind Bitcoin Corporate Treasury Convertible Bond ETF (BMAX), offering investors exposure to convertible bonds issued by companies holding Bitcoin in their corporate treasury.
REX Shares claims that BMAX bundles multiple convertible bond offerings into a single fund, making it easier for investors to access companies using this financing strategy.
"BMAX is the first ETF giving retail investors and investment advisors access to convertible bonds issued by companies integrating Bitcoin into their financial strategy," stated Greg King, CEO of REX Financial, in a press release.
REX Shares stated that the fund provides an escape for investors from the complexities of buying Bitcoin or sourcing for individual convertible bonds. It also noted that BMAX offers a mix of financial security and growth potential by investing in these bonds. The fund will invest 80% of its net assets in convertible bonds issued by these companies.
"BMAX removes those barriers, making it easier to invest in the strategy pioneered by Michael Saylor — leveraging corporate debt to acquire Bitcoin as a treasury asset," said King.
Strategy CEO Michael Saylor is regarded by many as the pioneer of issuing convertible bonds to buy Bitcoin. This has been the approach behind Strategy's aggressive Bitcoin buying spree in the past six months.
The company also paved the way for other publicly-listed companies to begin adding Bitcoin to their corporate treasury. Popular examples include Semler Scientific, which adopted Bitcoin into its treasury in May and Marathon Digital.
Strategy has issued $8.3 billion worth of convertible notes to purchase Bitcoin so far. The company's latest offering was in February when it issued $2 billion in convertible notes through a zero-coupon offering and used the proceeds to purchase an additional 20,356 BTC. The acquisition was at an average price of $97,514 per BTC, bringing its total holdings to 499,096 BTC worth over $41 billion.
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