OranjeBTC Launches 95% STRC Weighted Digital Yield ETF on Brazil’s B3

Brazil’s largest bitcoin treasury firm OranjeBTC is gearing up to list a Digital Yield ETF (DIGY11) that will allocate 95% of its assets to Strategy preferred stock STRC and the remaining 5% to Strive’s equivalent SATA.

Architecture of the Digital Yield ETF: DIGY11

DIGY11 will trade on Brazil’s B3 exchange in the local currency (R$) and distribute monthly USD‑denominated payouts. The fund aims to deliver the Brazilian risk‑free rate CDI 14.15% plus an additional 3‑5% net yield.

Yield and Cost Blueprint

■Annual distribution yields of 12.5% for STRC and 13.1% for SATA

■Estimated total fund expense 1.30%

■Management fee 0.90%, with an undisclosed consulting share for OranjeBTC

■OranjeBTC holds 3,950 BTC ($250 million) on its balance sheet

FX Hedging and Rebalancing Strategy

The fund will hedge its dollar exposure through one‑month foreign‑exchange forwards rolled monthly and will rebalance the portfolio quarterly, aiming to cap unexpected returns from USD/BRL volatility.

Competitive Landscape and Market Depth

■21Shares Strategy Yield ETP in Europe holds only $17.6 million of STRC and reinvests its monthly distributions.

■VanEck PFXF manages $2.44 billion of assets, of which roughly $251 million is in STRC and similar preferred securities (~10% of the portfolio).

■Brazil’s crypto funds and ETFs total 13.7 billion BRL ($2.6 billion) across 576,000 investors (April 2025).

Timeline and Launch Outlook

DIGY11 is slated to begin trading in early September, though a firm listing date has not yet been set.

Markets view this product as a rare bridge between Brazil’s high‑interest environment and crypto liquidity. However, the sustainability of preferred‑share payouts and rising forward‑contract costs could pressure the net‑yield target. OranjeBTC’s 95% STRC weighting introduces a sizable exposure to STRC price swings, meaning investors must scrutinize the risk‑return profile carefully.