Innovation hits the financial markets again. REX Shares just rolled out something completely different – the REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX). Launched March 14, 2025, it’s the first ETF giving regular folks access to convertible bonds from companies stashing Bitcoin in their treasuries. Yeah, that’s a mouthful. But it’s actually pretty simple.
Innovation hits financial markets with BMAX—the first ETF letting everyday investors tap into Bitcoin corporate treasury convertible bonds.
BMAX trades on NASDAQ and focuses on companies using debt to buy Bitcoin. These firms issue convertible bonds, then use that cash to load up on crypto. Smart move? Depends who you ask.
Strategy (formerly MicroStrategy) leads this weird new financial trend. They’ve issued nearly $9 billion in convertible bonds just to buy Bitcoin. That’s not a typo. They’re sitting on roughly 499,096 BTC worth about $40 billion. No surprise they represent a massive chunk of BMAX’s holdings.
This ETF isn’t just another Bitcoin fund. It’s different. You’re not buying Bitcoin directly. You’re not even buying stock in Bitcoin companies. You’re buying their debt. But it’s special debt that can convert to equity if things go well. Stability with upside potential. At least that’s the pitch.
Corporate treasuries started piling into Bitcoin around 2020. Concerns about currency debasement, inflation, and general economic chaos drove the trend. Bitcoin seemed like a solution. Whatever.
The risks? Oh, there are plenty. Bitcoin’s price swings like a moody teenager. Regulatory uncertainty is a constant cloud. And BMAX concentrates heavily on a few issuers like Strategy. If they stumble, watch out. The fund’s performance will likely fluctuate as widening corporate bond spreads typically indicate reduced market confidence in these assets.
Some analysts claim small Bitcoin allocations boost traditional portfolios. A measly 1% supposedly juiced returns for standard 60/40 portfolios without much extra volatility. BMAX offers that exposure without dealing with crypto exchanges or wallets. The shift toward institutional investment aligns with data showing institutional holders now control approximately 20% of Bitcoin on major exchanges.
For investors curious about Bitcoin but terrified of actually owning it, BMAX provides an alternative route. The fund’s active management approach helps navigate the volatile landscape of Bitcoin-related investments. Whether it’s brilliant or bonkers remains to be seen.
