Highlights

OranjeBTC, Brazil’s largest bitcoin treasury firm, plans to launch the Digital Yield ETF (DIGY11) on B3, initially allocating 95% to Strategy’s STRC preferred shares and 5% to Strive’s SATA. DIGY11 aims to deliver monthly distributions and targets annual payouts roughly equal to Brazil’s CDI rate plus 3–5 percentage points, net of fees. The fund will hedge U.S. dollar exposure with monthly FX forwards and charge a 0.90% management fee; trading is expected to begin in early September.

Sentiment Analysis

• Overall sentiment is moderately positive. The proposal reflects a strategic effort to provide Brazilian investors access to U.S. dollar-denominated preferred-share income via a local, real-denominated ETF. The plan emphasizes income generation, currency risk management, and a clear fee structure. Market reception may be cautious given similar products’ modest adoption outside the U.S. and the inherent uncertainties in preferred-share distributions. The progress bar below visualizes a positive-but-tempered outlook.

Article Text

OranjeBTC, a prominent Brazilian firm known for holding a sizable bitcoin treasury, has announced plans to introduce the Digital Yield ETF, to be listed as DIGY11 on Brazil’s B3 exchange. The ETF’s initial allocation would concentrate 95% of its portfolio in Strategy’s preferred shares (STRC) and the remaining 5% in Strive’s SATA preferred-equivalent. Both STRC and SATA make recurring U.S. dollar distributions, which form the basis for DIGY11’s targeted monthly payouts. OranjeBTC holds approximately 3,950 BTC and is positioning DIGY11 as a product that channels stable, dollar-denominated preferred-share distributions into a real-denominated vehicle for Brazilian investors.

DIGY11 aims to provide annual distributions that, net of costs, approximate Brazil’s Interbank Deposit Certificate (CDI) rate plus an additional 3 to 5 percentage points. OranjeBTC’s internal estimate uses Brazil’s prevailing CDI as a reference for a risk-free local rate and factors in the interest-rate differential between Brazil and the United States. The firm expects the fund’s total costs to be around 1.30%, with a stated management fee of 0.90%. However, these projected distributions exclude potential changes in the ETF’s share price and do not constitute a guarantee of future returns.

To mitigate currency risk arising from dollar-denominated preferred-share distributions, DIGY11 would hedge its U.S. dollar exposure using one-month foreign-exchange forwards. These forwards would be rolled monthly and the hedge rebalanced on a quarterly basis, according to OranjeBTC’s strategy and research team. The fund’s operational structure assigns portfolio management responsibilities to 3R Investimentos, while MarketVector would maintain the benchmark index. OranjeBTC will receive a portion of management-related proceeds under an agreed consulting arrangement, though the exact split has not been disclosed.

Preferred-share yields from the underlying securities are an important input to DIGY11’s expected yield profile. At present, STRC and SATA report yields in the low double-digits, which underpin OranjeBTC’s projection of CDI-plus spreads. Still, investors should note that preferred-share distributions are declared by issuers and can vary over time. This key point — that distributions and share-price movements are variable and not guaranteed — remains central to assessing DIGY11’s prospective returns.

Products with similar designs have launched in other markets with mixed traction. For example, the 21Shares Strategy Yield ETP, listed in Europe, holds STRC and reinvests distributions rather than paying them out, and its assets under management have remained modest. In the U.S., exposure to Strategy-related preferred securities is often packaged inside broader preferred-stock funds. VanEck’s PFXF, for instance, holds a meaningful allocation to Strategy preferred issues as part of a diversified preferred stock strategy. These precedents suggest investor demand can vary significantly by region and by the specific payout mechanics of each fund.

Brazil already hosts an established market for listed crypto-related products, and interest in diversified crypto-linked and income-generating strategies has been growing. As of April 2025, crypto funds and ETFs in Brazil held substantial assets and served hundreds of thousands of investors. OranjeBTC expects DIGY11 to begin trading in early September, though it has not announced a firm listing date. If launched, DIGY11 would offer Brazilian investors a way to access U.S. dollar preferred-share distributions through a locally traded, real-denominated ETF that incorporates active currency hedging and targets monthly income.

As with any investment vehicle, prospective DIGY11 investors should carefully consider the product’s fee structure, the variability of preferred-share payouts, the mechanics and cost of hedging, and the potential impact of interest-rate differentials between Brazil and the U.S. The fund’s concentrated allocation to a single issuer’s preferred shares also raises concentration risk considerations. Due diligence and a clear understanding of how distributions are generated and paid are recommended before allocating capital to DIGY11.

Key Insights Table