Overview
- OranjeBTC disclosed the proposed Digital Yield ETF, DIGY11, on Thursday and said it expects the fund to begin trading on B3 in early September although no firm listing date has been set.
- The strategy would initially weight 95% to Strategy’s STRC preferred shares and 5% to Strive’s SATA, both of which pay recurring U.S. dollar distributions and currently yield roughly 12–13 percent.
- OranjeBTC projects annual distributions equal to Brazil’s CDI (about 14.15%) plus roughly 3–5 percentage points after accounting for an estimated 1.30% total cost, and it cautioned that distributions are estimates and not guaranteed.
- The ETF would charge a 0.90% management fee, hedge U.S. dollar exposure with one-month FX forwards rolled monthly and rebalanced quarterly, name 3R Investimentos as portfolio manager and MarketVector as index provider, and leave OranjeBTC’s consulting fee share undisclosed.
- The product aims to give Brazilian investors easier access to preferred-share income without direct ownership, but its returns will depend on future preferred-share payouts, the Brazil‑U.S. rate gap and hedging costs, and similar overseas products have seen limited scale.