REX Launches Bitcoin Corporate Treasury Convertible Bond ETF

Bitcoin is continuing to find its way into traditional financial markets, offering investors indirect exposure through corporate securities and exchange-traded funds (ETFs).

REX Shares, a well-known ETF provider with more than $6 billion in assets under management (AUM), has introduced a new product: the Bitcoin (BTC) Corporate Treasury Convertible Bond ETF, labeled BMAX. This ETF specifically invests in the convertible bonds issued by companies that adopt a strategy of maintaining Bitcoin reserves.

As announced on March 14, the BMAX ETF will acquire convertible notes from various companies, including MicroStrategy. Convertible notes are a type of debt that can be converted into equity at a certain rate, which investors may choose to execute.

Generally, these types of convertible bonds are of interest to institutional investors, like pension funds, that often focus on this kind of investment. Greg King, the CEO of REX Financial, commented, "Until now, these bonds have been difficult for individual investors to reach. 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."

For investors, buying convertible bonds, along with ETFs and stocks of companies such as MicroStrategy, Marathon Digital Holdings (MARA), and Metaplanet, provides a way to gain indirect exposure to Bitcoin investment. This approach helps avoid the complex challenges of directly holding Bitcoin, such as the risks associated with self-custody.

Michael Saylor, co-founder of MicroStrategy, is well-known for advocating corporate Bitcoin treasury strategies. Source: Cointelegraph

Related: MicroStrategy’s Strategy to Secure up to $21 Billion to Acquire More Bitcoin

Investment Opportunities for Institutional Investors

Many institutional investors may struggle with the technical aspects of directly holding BTC or face legal and fiduciary constraints that limit their ability to invest in digital assets.

Currently, at least 12 states in the U.S. hold shares of MicroStrategy as part of their pension funds and treasuries, collectively owning over $271 million in stock. The states involved include Arizona, California, Colorado, Florida, Illinois, Louisiana, Maryland, North Carolina, New Jersey, Texas, Utah, and Wisconsin.

The California State Teachers’ Retirement Fund and its Public Employees' Retirement System are significant investors, holding $67.2 million and $62.8 million, respectively, in MicroStrategy stock.

According to SaylorTracker, MicroStrategy currently owns 499,096 BTC, valued at over $41.4 billion, making it one of the largest corporate holders of Bitcoin globally, surpassing the U.S. government's estimated hold of 198,000 BTC.

MicroStrategy made its latest Bitcoin purchase on February 24, acquiring 20,356 BTC for almost $2 billion.

Magazine: ‘China’s MicroStrategy’ Meitu Sells All Its Bitcoin and Ethereum: Asia Express

Bitcoin, ETF, Bonds