Brazil’s largest bitcoin treasury firm is planning to launch an exchange-traded fund concentrated almost entirely in STRC, according to a report from CoinDesk. The fund would direct 95% of its holdings into the preferred stock instrument issued by Strategy, the U.S. company formerly known as MicroStrategy.
STRC is one of several preferred equity instruments Strategy has issued as it builds out its capital structure around a large corporate bitcoin treasury. Unlike Strategy’s common stock, preferred instruments like STRC are designed to behave more like fixed-income products, offering scheduled dividend payments while still carrying exposure to the company’s bitcoin-linked balance sheet.
By wrapping that exposure inside an ETF, the Brazilian firm would give local investors a way to access Strategy’s bitcoin treasury strategy without buying U.S.-listed shares directly. This matters because many retail and institutional investors in Brazil face friction, tax complexity, or account restrictions when purchasing foreign securities outright. A locally listed ETF can simplify that access considerably.
The plan also reflects a broader trend of corporate bitcoin treasury strategies inspiring copycat structures worldwide. Strategy became the most prominent public company to hold large amounts of bitcoin on its balance sheet, funding purchases partly through equity and debt issuance, including preferred shares like STRC. Other firms, including some in Latin America, have adopted similar treasury approaches, holding bitcoin as a corporate reserve asset rather than cash.
Concentrating 95% of an ETF’s assets in a single security is unusual for a diversified fund vehicle, though such structures do exist for thematic or single-strategy products. The remaining 5% allocation was not detailed in the report, leaving open questions about what other assets the fund might hold and how it would manage liquidity or redemption needs.
Regulatory approval status for the proposed ETF was not specified in the available reporting. Brazil’s securities regulator, the Comissão de Valores Mobiliários, oversees domestic fund listings and would need to review any such product before it could trade publicly. The timeline for a potential launch was also not disclosed.
The firm behind the proposal has already established itself as a significant holder of bitcoin on its own corporate balance sheet, according to the report, positioning it as a domestic peer to Strategy’s treasury model. Extending that strategy into a retail-facing ETF would mark a new step, shifting from direct corporate bitcoin exposure toward a fund product built around another company’s preferred stock.
Sources disagree on this story
This article was published before the reports below were compared. The reporting above stands; what follows is where the published accounts do not agree.
Reports on OranjeBTC's DIGY11 ETF agree on most structural details but diverge on what STRC actually is, and on its current dividend rate.
What all sources agree on
- OranjeBTC plans the DIGY11 ETF with an initial 95% allocation to Strategy's STRC preferred shares and 5% to Strive's SATA.
- DIGY11 targets annual distributions of Brazil's CDI rate plus roughly 3-5 percentage points, net of costs, with no guaranteed return.
- The fund will charge a 0.90% management fee.
- DIGY11 is expected to list on Brazil's B3 exchange in early September.
- The ETF will hedge U.S. dollar exposure using monthly (one-month) FX forwards.
Where the reports disagree
1What STRC actually is
$STRC is a cryptocurrency focused on digital credit solutions, aiming to modernize financial transactions.
STRC and SATA pay recurring U.S. dollar distributions. The companies' bitcoin remains on their balance sheets and is not pledged to the preferred shareholders.
STRC is Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock.
What would settle it: Strategy's own SEC filings describing STRC's security type
2STRC's current annualized dividend rate
Strategy's STRC currently pays a 12% annualized dividend rate, while Strive's SATA pays 13% annually.
Yields are currently at 12.5% and 13.1%, respectively.
STRC and SATA currently yield 12.5% and 13.1%
What would settle it: Strategy's published monthly dividend rate page for STRC
What to make of it
Treat the ETF's structure, allocation, fee and September B3 listing as established; the description of STRC as a preferred stock security is corroborated by multiple outlets, so readers should be cautious about any characterization of it as a cryptocurrency, and should not rely on a single precise dividend-rate figure without checking Strategy's own published rate.
Market Impact
If the ETF proceeds, it would create a new regulated channel linking Brazilian capital markets to Strategy's bitcoin-backed preferred stock. That could deepen cross-border investor interest in Strategy's capital structure, particularly among those seeking dividend-style income tied indirectly to bitcoin price performance.
The concentration risk embedded in a 95% single-security allocation is notable. Any change in STRC's dividend terms, credit profile, or trading liquidity could have an outsized effect on the ETF's value and its investors. Market participants will likely watch for regulatory feedback from Brazilian authorities and any additional detail on fund structure before drawing conclusions about broader adoption of similar products elsewhere.
The proposed ETF underscores growing interest in packaging bitcoin treasury strategies into accessible, regulated investment vehicles. Further details on structure, timing, and regulatory approval are expected as the plan develops.
Frequently Asked Questions
What is STRC?
STRC is a preferred stock instrument issued by Strategy, the company formerly known as MicroStrategy, tied to its large corporate bitcoin treasury and designed to pay scheduled dividends.
Why would an ETF allocate 95% to a single security?
Reports did not specify the reasoning, but such concentrated structures are typically built around a single investment theme or strategy rather than broad diversification.
Has the ETF received regulatory approval in Brazil?
The available reporting did not indicate whether Brazil's securities regulator has approved or reviewed the proposed fund yet.
How would this ETF differ from buying Strategy's stock directly?
A locally listed ETF would allow Brazilian investors to gain exposure to Strategy's preferred stock through a domestic fund, potentially avoiding some of the friction involved in purchasing U.S.-listed securities directly.