Rex Shares, a well-known digital investment provider, has made a big move in the crypto industry. Earlier today, the company introduced BMAX, the first exchange-traded fund (ETF) focused on convertible bonds from companies that adopt Bitcoin into their financial plans.
As announced, this new ETF will make it easier for retail investors and financial advisors to access these bonds, which were previously difficult to invest in.
How BMAX Works
BMAX is designed for investors who want exposure to companies using Bitcoin in their corporate treasury.
The investment product offers a mix of debt security and potential equity growth, making it an attractive option for those looking to invest in Bitcoin-related assets with less risk than buying the assets directly.
Rex Shares mentioned that the fund is actively managed and comprises 81.21% of bonds from Strategy, a Bitcoin-focused software intelligence company.
Meanwhile, other holdings include bonds from major Bitcoin miners like MARA, which holds 14.6%, and Riot Platforms, which has 4.02%, with a small portion of 0.17%, in cash and other assets.
Notably, the Nasdaq-listed Company, formerly MicroStrategy, pioneered holding Bitcoin as a corporate reserve in 2020.
Why do Convertible Bonds Matter in the Digital Financial Sector?
Convertible bonds allow companies to raise money by issuing debt that can later be converted into stock. Many companies, including Strategy, have used this method to buy large amounts of Bitcoin. In February, Strategy issued $2 billion in zero-coupon convertible notes to purchase 20,356 BTC at an average price of $97,514 per Bitcoin.
This brought the company’s total Bitcoin holdings to 499,096 BTC, worth over $47 billion. Several Bitcoin-focused companies, including MARA, Metaplanet, and Riot Platforms, have also used similar financing strategies.
The Rise of Bitcoin-Focused ETFs
BMAX’s launch comes right after Bitwise’s Bitcoin Standard Corporations ETF (OWNB) debut. While BMAX focuses on convertible bonds, OWNB invests in stocks of companies holding more than 1,000 BTC. Similarly, both ETFs provide different ways for investors to gain exposure to Bitcoin’s growing role in corporate finance.
Rex Shares has made strides to expand its crypto ETF lineup. In January, the company partnered with Osprey Funds to file registration for seven crypto funds. These funds focused on Ethereum (ETH), Bitcoin, Solana (SOL), XRP, Dogecoin, Bonk, and even a TRUMP memecoin ETF following President Donald Trump’s inauguration.
Recently, Rex and Osprey teamed up to launch the first ETF for MOVE, the native token of the Movement network. This proposed fund will track the market performance of the newly launched cryptocurrency while protecting investors from the potential risks involved. This comes as the network’s public mainnet beta went live.
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