Michael Saylor has helped create a whole new cryptocurrency complex by courting retail night magic and opportunistic hedge funds that have made his Wall Street skeptical than building a Bitcoin empire.
Now, the complex will grow again. On Friday, the formation of the convertible bond exchange trade fund focused on companies such as Saylor’s new brand strategies that have bitcoin on its balance sheet.
Rex Bitcoin Corp. Treasury Convertible Bond ETF (which debuts under Stock BMAX) holds well-known converters in the industry, including strategy, turbocharges a stock-linked note-taking method to fund its cryptocurrency purchases. Great success in hard workStimulateMany other companies can replicate the method.
Convertible bonds start their lives with low-interest notes, but can be turned into stocks if the stock price is high enough. Investors who buy and hold them can profit from their interest expenses or from any potential upside if the bonds are converted into stocks.
These hybrid tools are often traded by institutional investors, including long-term investors and hedge fund participantsAdopt arbitrage strategyBe with them. So, according to Rex Financial CEO Greg King, the new ETF gives retailers the opportunity to use convertibles issued by companies that actively incorporate bitcoin into their balance sheets.
“So far, these bonds have been difficult for individual investors to reach. BMAX eliminates these obstacles,” King said in a statement. The fund also owns a convertible from Mara Holdings Inc., which launched its convert-Bitty coin purchase after strategy.
This is the latest crypto ETF in the mass market, which complexes the complexity of the mass market, and tests the dangerous assets that the trade war teams are worried about in amidst huge short selling.
A software-centric company, under the auspices of its chairman Saylor, is the largest convertible bond issuer in recent years, raising nearly $9 billion. The company and cryptocurrency peers like Mara, Riot and Bitdeer Technologies Group have jointly raised billions of dollars over the past four months,AccountingBoarders are increasingly holding the U.S. convertible market.
These crypto issuers, who tend to have huge price volatility, are gaining attention from convertible arbitrageurs who buy bonds and shorten stocks, which is basically betting on volatility.
$ bmax It is the first ETF to enable retail investors and investment advisors to access convertible bonds that incorporate Bitcoin into its financial strategy. – @GregoryDking CEO of Rex Financial
– MichaelSaylor⚡️ (@saylor) March 14, 2025
But for convert investors, including retail people who may buy BMAX as a bet (who are respected figures in the cryptocurrency and X circles), these instruments still pose credit risk, meaning that shares that raise interest or repay principal in the issuer’s struggles may suffer.
According to data compiled by Bloomberg, there are at least seven convertible bond-centric ETFs on the market, most notably the $4 billion SPDR Bloomberg Convertible Securities ETF (CWB), which tracks the index, which has been trading since 2009. At least five of the seven funds have certain strategies exposed.
Daisy chain complex
BMAX also added another notch to the powerful Daisy Chain Financial Products complex, which was built in the years since it began buying bitcoin for its treasury, which other ETF issuers hoped to capitalize.
Earlier this week, Bitwise launched a fund that tracks an index of companies that use Bitcoin as an asset to the company’s Treasury Department – STRATEGY accounts for nearly a quarter of the company. Bitwise said more than 70 listed companies collectively hold more than $60 billion in Bitcoin on their balance sheets. The former micro-wanderer accounts for about $40 billion of the total.
Meanwhile, a pair of stocks that return twice a day trades trade funds are a favorite of one-day traders who want a lot of strategies to be exposed: both stocks (both involving stocks’ MSTX and MSTU, both of which are also about $4 billion inflows, although they attract other products respectively, but also attract cash from these themed topics.
In particular, the popularity of these two strategic funds has led some market observers to point out the leveraged buying frenzy. It’s like this: Investor demand for ETFs pushes up the price of the strategy, allowing it to raise more funds and further support Bitcoin itself.
“There is an increasing number of ETF ecosystems built around the domination of cycling strategies, and its endurance and relevance are very good,” said Athanasios Psarofagis of Bloomberg Intelligence. But if the strategy sells, as in recent weeks, the interconnection system will be affected. For this situation, ETFs are trying to provide twice the stock returns.
This story was originally fortune.com
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