A groundbreaking new fund has made it possible for individual investors to tap into the convertible debt issued by corporates to add bitcoin to their balance sheet, breaking down long-standing barriers to entry.
The REX Bitcoin Corporate Treasury Convertible Bond ETF, launched by REX Shares, is a first-of-its-kind fund that allows investors to tap into the convertible debt issued by corporates to add bitcoin to their balance sheet. ‘This innovative investment vehicle has made it easier for individual investors to access the strategy pioneered by Michael Saylor.’
Increasing numbers of corporations are considering 'bitcoin' as a potential addition to their treasuries.
This trend is driven by the desire for diversification and hedging against inflation.
Corporations such as MicroStrategy, Tesla, and Square have already made significant investments in 'bitcoin'.
According to a survey, 40% of institutional investors plan to increase their allocation to digital assets in the next year.
The use of 'bitcoin' in corporate treasuries is expected to grow as more companies recognize its potential benefits.
Key Holdings and Issuers
The majority of the fund’s holdings are comprised of convertible paper issued by Michael Saylor‘s Strategy, followed by other top 10 holdings including the convertible notes of bitcoin miners ‘Marathon Digital’ and ‘Riot Platforms’. This diverse portfolio provides a unique opportunity for investors to diversify their exposure to the cryptocurrency market.
Michael Saylor is an American entrepreneur and business executive.
He is the CEO of MicroStrategy, a leading global provider of cloud-based services.
Saylor has been a vocal advocate for Bitcoin adoption, believing it to be a store of value and a hedge against inflation.
Under his leadership, MicroStrategy invested heavily in Bitcoin, holding over $4 billion worth of BTC as of 2022.
Saylor's efforts have contributed significantly to the growth of institutional investment in Bitcoin.
Breaking Down Barriers
Until now, these bonds have been difficult for individual investors to reach due to high barriers to entry. However, REX Shares has removed those obstacles, making it easier for investors to invest in this strategy. ‘The CEO of Rex Financial, Greg King, stated that BMAX removes the barriers, allowing investors to access the strategy pioneered by Michael Saylor.’
Rex shares refer to the ownership interests in a company called Rex, which is involved in various business activities.
The term 'shares' represents a unit of ownership in the company.
In other words, when you buy or own rex shares, you essentially become a part-owner of the company.
This means you have a claim on the company's assets and profits.
Rex shares can be traded publicly on stock exchanges, allowing investors to buy and sell them as they see fit.
Launch and Trading Details
The fund officially launched today and trades on the Nasdaq with a gross expense ratio of 0.85%. It was seeded with $25 million in assets, providing a solid foundation for this new investment vehicle. The shares of the ETF are higher in early trading as bitcoin has rallied from an overnight low of around $80,000 to above $84,000.
Expert Insights
Helene Braun, a New York-based news reporter at CoinDesk, and James Van Straten, Senior Analyst at CoinDesk, provide expert insights on this new fund. Helene covers news about Wall Street, the rise of spot bitcoin exchange-traded funds, and updates on crypto exchanges. James specializes in Bitcoin and its interplay with the macroeconomic environment.
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- coindesk.com | Bitcoin Related Convertible Bond ETF Comes to Market
- businesswire.com | REX Launches Bitcoin Corporate Treasury Convertible Bond ETF ...
