Bitcoin is becoming more integrated into the legacy financial system through indirect exposure provided by corporate securities and ETFs.
REX Shares, an exchange-traded fund (ETF) provider with over $6 billion in assets under management (AUM), launched its Bitcoin (BTC) Corporate Treasury Convertible Bond (BMAX) ETF that invests in the convertible bonds of companies with a BTC corporate reserve strategy.
According to the March 14 announcement, the ETF will purchase the convertible notes of companies such as Strategy. Convertible notes are commercial paper that can be converted into equity at a predetermined rate if an investor chooses.
Typically, these convertible bonds are purchased by institutional investors, including pension funds, some of which specialize in convertible note investing. Greg King, CEO of REX Financial, said:
