REX Financial Launches Bitcoin Corporate Treasury ETF

REX Financial has launched the rex Bitcoin Corporate Treasury Convertible Bond ETF (BMAX), a groundbreaking financial product that offers investors access to convertible bonds issued by companies that have integrated Bitcoin into their corporate treasuries. This ETF is the first of its kind, providing a unique investment opportunity that combines the stability of debt with the potential upside of equity.

The strategy behind bmax is inspired by Michael Saylor, Chairman of Strategy, who pioneered the approach of using convertible bonds to finance Bitcoin purchases for corporate treasuries. By investing in BMAX, investors gain exposure to companies like Strategy, which are leaders in Bitcoin-backed convertible debt. Greg King, CEO of REX Financial, emphasized that BMAX removes barriers for retail investors and investment advisors, making it easier for them to access these bonds.

BMAX is part of REX Financial's broader strategy to offer alternative-strategy ETFs and ETNs. The company, known for its MicroSectors™ and T-REX product lines, has recently introduced a series of option-based income strategies. With over $6 billion in assets under management, REX Financial is renowned for its innovative approach to financial products, making it a leader in the industry.

It is important to note that investing in BMAX is not the same as investing directly in Bitcoin. The ETF is actively managed, and its performance reflects the investment decisions made by the fund's advisors. The fund's investment exposure is concentrated in the same industries as the underlying securities, which may include risks associated with the crypto sector, corporate treasury companies, convertible bonds, and Bitcoin itself. These risks can impact the fund's net asset value, trading price, yield, total return, and ability to meet its investment objectives.

The value of the fund, which focuses on underlying securities in the crypto sector, may be more volatile than a more diversified pooled investment or the market as a whole. Corporate treasury companies face unique risks due to holding Bitcoin, including speculative perception, criticism, regulatory scrutiny, and accounting challenges. Convertible bonds, which have characteristics of both equity and debt securities, are exposed to risks associated with both types of securities. The market values of convertible bonds may decline as interest rates increase and, conversely, may increase as interest rates decline.

MicroStrategy Incorporated, one of the issuers of convertible bonds, faces risks related to its Bitcoin acquisition strategy, including the volatility of Bitcoin, regulatory oversight, concentration risk, liquidity risk, and counterparty risk. The company also faces risks related to its enterprise analytics software business strategy, including dependence on revenue from a single software platform and the shift from a product license model to a cloud subscription model.

Bitcoin itself exposes investors to significant risks, including uncertainty surrounding new technology, limited evaluation due to its short trading history, and the potential decline in adoption and value over the long term. The extreme volatility of Bitcoin's price is also a risk factor. Regulatory uncertainties, such as potential government interventions and conflicting regulations across jurisdictions, can impact the demand for Bitcoin and restrict its usage. Additionally, risks associated with the sale of newly mined Bitcoin, Bitcoin exchanges, competition from alternative digital assets, mining operations, network modifications, and intellectual property claims pose further challenges to Bitcoin-linked investments.

The fund is subject to various risks, including active management risk, call risk, derivatives risk, options contracts risk, extension risk, indirect investment risk, liquidity risk, new fund risk, restricted securities risk, taxable fund risk, U.S. government securities risk, counterparty risk, cyber security risk, information technology sector risk, software industry risk, and concentration risk. These risks can impact the fund's performance and the value of an investment in the fund.