REX Shares Launches Bitcoin Corporate Treasury Convertible Bond (BMAX) ETF

REX Shares has launched the Bitcoin Corporate Treasury Convertible Bond (BMAX) ETF, designed to give investors access to convertible bonds issued by companies

REX Shares has launched the Bitcoin Corporate Treasury Convertible Bond (BMAX) ETF, which will provide investors with exposure to convertible bonds issued by companies that are using debt to acquire Bitcoin.

The fund, which was announced on Monday, 14 March, will target firms that are known to be incorporating Bitcoin into their corporate treasuries.

Recently, there has been a surge in interest from publicly traded companies to obtain funds through convertible notes for BTC purchases.

Strategy, under the leadership of executive chairman Michael Saylor, is a pioneer in this approach and has acquired a significant portion of its 499,096 BTC holdings from 2024 issuances.

Another notable company that has adopted this strategy is Metaplanet, which has also been actively engaged in raising capital through convertible bonds.

BMAX will offer investors a convenient way to invest in a basket of these bonds, presenting a structured avenue for exposure to this market.

The fund will concentrate on key issuers such as Strategy, providing a targeted approach within a broader investment strategy.

This ETF is designed to balance the security of debt with the potential for equity upside.

The structure of the fund enables investors to benefit from companies that are integrating BTC into their treasury strategies in a sustainable manner, combining the advantages of convertible bonds with the potential for capital appreciation from the equity component of the bonds.

Furthermore, BMAX will be offered as a regulated investment vehicle, eliminating the complexity that investors would otherwise face in sourcing individual bonds or managing direct BTC ownership.

Investors seeking to engage with this market in a more controlled manner, without dealing with the volatility of holding Bitcoin directly, will find this ETF to be a suitable investment vehicle.

Commenting on the launch of BMAX, Greg King, CEO of REX Financial, stated that it is the first ETF in the U.S. to provide investors with access to convertible bonds issued by companies that are using debt to fund their Bitcoin treasury holdings.

“Those bonds are not currently easily accessible to individual investors. But BMAX will make it possible for investors to participate in the strategies of companies that are using debt to buy bitcoin in a capital-efficient manner.”

This ETF expands the options available for investing in Bitcoin without direct ownership, joining a growing category of such products.

Recently, there has been a focus on launching ETFs that track Bitcoin mining stocks and treasury-backed Bitcoin investments.

As these offerings expand, it highlights Bitcoin’s increasing presence in traditional finance, presenting investment opportunities beyond the standard spot Bitcoin ETFs.