Outside Source
Key Takeaways:
- BMAX is the first-of-its-kind ETF designed for that purpose, giving exposure to companies with Bitcoin on their balance sheets via convertible bonds.
- The fund seeks to offer a combination of fixed income stability and optionality in equity upside, attracting interest from investors looking for nontraditional Bitcoin exposure.
- Investors should be aware of BMAX’s risks, including Bitcoin price volatility and the performance of key holdings like Strategy.
The new REX Bitcoin Corporate Treasury Convertible Bond ETF, which began trading on NASDAQ on Friday, March 14, 2025, under the ticker BMAX, is designed to be more sensitive to Bitcoin fluctuations than traditional bonds, making it particularly suited for corporate treasuries with significant financial exposure to Bitcoin. The first-of-its-kind ETF (exchange-traded fund) offers exposure to convertible bonds, where companies integrate Bitcoin into their corporate treasuries. This is especially important for firms such as Strategy, which have a considerable amount of their financials tied up in Bitcoin.
BMAX – The REX Bitcoin Corporate Treasury Convertible Bond ETF
BMAX Provides Access to a Unique Asset Class
Greg King, CEO of REX Financial, added, “BMAX is the first ETF giving retail investors and investment advisors access to convertible bonds issued by companies integrating Bitcoin into their financial strategy.” Until now, such bonds have been hard for individual investors to access. He adds that 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.”
Led by Strategy Executive Chairman Michael Saylor, more public companies have been issuing convertible bonds to fund Bitcoin acquisitions for their treasury. As a solution, BMAX seeks to bring access to these bonds into a single, actively managed ETF with a combination of stable debt and potential equity upside. It allows investors to indirectly bet on Bitcoin without exposing such investors to risks.
Investment Strategy and Portfolio Composition
The fund is also strategically targeting issuers with active Bitcoin treasury strategies. The BMAX fund is heavily tilted with Strategy convertible bonds at launch (81.21%). Bitcoin miners like MARA and Riot Platforms’ bonds account for 14.6% and 4.02%, respectively. The remaining 0.17% of holdings are in “cash and other” assets.
By focusing on companies with heavy exposure to Bitcoin, BMAX can take advantage of the potential upside of this popular digital asset. It also means that the fund’s performance will be closely linked to the success of these companies’ strategies and the overall performance of Bitcoin.
Strategy has a serious commitment to Bitcoin. It bought an additional 20,356 BTC for nearly $1.99 billion, or an average price of $97,514 per bitcoin, after completing its most recent $2 Billion zero-coupon convertible note offering in February. This brings its total holdings to 499,096 BTC, worth over $41 billion. This is a testament to Michael Saylor’s conviction on Bitcoin’s long-term value.
This should appeal to a variety of investors. The bond component may appeal to conservative investors seeking income and stability. Investors with some risk tolerance might see this as an opportunity to gain exposure to Bitcoin’s potential upside without facing its direct volatility. For investors whose focus is solely on high-growth potential, the bond element might seem too conservative.
A Closer Look at REX’s Growing Crypto Ecosystem
In recent weeks, REX Shares has been increasing its ETF-related activity for crypto as well. In January, the firm signed an agreement with Osprey Funds to submit registration statements for several funds, which included one for the TRUMP memecoin. The filings had plans for Ethereum, Bitcoin, Solana, XRP, Dogecoin, and Bonk funds.
REX and Osprey Funds also submitted the first application to list an ETF tracking MOVE, the native token of the Movement network, with the public mainnet beta of that project launching at the time. These moves signal a huge opportunity for REX in the crypto market.
REX Shares’ ETF
Important Risk Considerations
Keep in mind that investing in BMAX is different from investing in Bitcoin directly. The fund carries multiple risks which include those of the companies that hold Bitcoin in their corporate treasuries, for example Strategy. These “Bitcoin Corporate Treasury Companies” face speculative hype, regulatory scrutiny, and accounting quirks.
Additionally, convertible bond values fluctuate with stock prices and interest rates. If the price of Bitcoin drops significantly, for example, the value of Strategy’s stock and convertible bonds may decline, negatively affecting the fund’s performance.
Related News: Bitwise Launches Bitcoin Corporate Treasury ETF: A Novel Approach to Bitcoin Exposure
This article first appeared at CryptoNinjas
