A digital asset income fund, or yield ETF, is an investment vehicle that pools capital to generate recurring cash distributions from underlying assets, such as corporate preferred shares tied to bitcoin treasury companies. The proposed DIGY11 fund by OranjeBTC is a specific financial instrument designed to provide Brazilian investors with exposure to U.S.-based bitcoin treasury stocks while distributing income in local currency.
According to CoinDesk (2026), OranjeBTC, Brazil's largest bitcoin treasury firm, intends to launch the DIGY11 ETF on the B3 stock exchange. The fund’s primary objective is to generate yield by holding preferred shares issued by companies that maintain significant bitcoin reserves on their corporate balance sheets. As of August 2026, OranjeBTC manages approximately 3,950 BTC, valued at roughly $250 million.
The DIGY11 fund operates by allocating 95% of its portfolio to Strategy’s STRC preferred shares and 5% to Strive’s SATA preferred shares. These preferred securities are designed to provide recurring U.S. dollar-denominated distributions to shareholders, derived from the capital structures of the issuing companies. It is important to note that the underlying bitcoin held by these corporations remains on their balance sheets and is not collateralized or pledged to the holders of the preferred shares (CoinDesk, 2026).
By pooling these shares, the fund aims to aggregate the dividend yields offered by these specific corporate instruments. Investors should understand that they are gaining exposure to the financial performance and dividend policies of these corporations rather than owning the bitcoin directly. The fund acts as a pass-through vehicle for the yields generated by these preferred stock positions.
OranjeBTC targets annual distributions equivalent to the Brazilian Interbank Deposit Certificate (CDI) rate—currently approximately 14.15%—plus an additional 3 to 5 percentage points. This total is calculated net of the fund’s estimated 1.30% total expense ratio, which includes a 0.90% management fee (CoinDesk, 2026). However, these projections are estimates and do not constitute a guarantee of future performance.
Several factors influence these returns, including the volatility of the underlying preferred share distributions and the interest rate differential between the United States and Brazil. Because the underlying assets pay out in U.S. dollars while the fund trades in Brazilian reais, the final return to the investor is highly sensitive to foreign exchange fluctuations.
Because the assets are denominated in U.S. dollars and the fund operates in Brazilian reais, OranjeBTC plans to hedge currency exposure using one-month foreign-exchange (FX) forwards. These contracts will be rolled monthly and rebalanced on a quarterly basis to mitigate the risk of the Brazilian real depreciating against the U.S. dollar (CoinDesk, 2026).
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More from GroundworkCurrency hedging is a critical component for investors seeking to isolate the yield of the underlying assets from the volatility of the local currency. Without such hedging, a sudden strengthening of the U.S. dollar could theoretically boost returns, but a weakening dollar would erode the value of the distribution in local terms. Investors must consider that hedging strategies incur costs, which are typically factored into the fund’s management fees and overall expense ratio.
Unlike traditional spot bitcoin ETFs that simply track the price of the digital asset, DIGY11 is an income-focused product. While spot ETFs provide direct exposure to price appreciation or depreciation, income ETFs like DIGY11 focus on cash flow generation via corporate dividend yields. Other products, such as the 21Shares Strategy Yield ETP available in Europe, hold similar instruments but often reinvest distributions rather than paying them out to shareholders (CoinDesk, 2026).
Furthermore, the exposure provided by DIGY11 is concentrated in specific corporate preferred securities. In contrast, broader preferred-stock funds, such as VanEck’s PFXF, typically maintain much lower exposure to these specific bitcoin-linked assets, often limiting such holdings to roughly 10% of their total portfolio (CoinDesk, 2026). DIGY11’s high concentration in STRC and SATA means the fund’s performance is tightly linked to the financial health and dividend sustainability of these two specific issuers.
Before considering an allocation to an income-focused digital asset ETF, you should evaluate the following factors:
- Underlying Asset Risk: Understand that you are investing in preferred shares, not physical bitcoin. The performance of these shares is linked to corporate balance sheets.
- Yield Volatility: Dividend distributions from preferred shares are not guaranteed and can be adjusted by the issuing companies based on their financial needs.
- Currency Exposure: Even with FX hedging, residual risk remains. Ensure you understand how the fund’s hedging strategy impacts your net returns.
- Management Fees: Total costs, including the 0.90% management fee and other operational expenses, directly reduce the net yield you receive.
- Liquidity and Market Access: Ensure the ETF has sufficient trading volume on the B3 exchange to allow for entry and exit without significant price slippage.
Investors should review the fund’s prospectus in detail once it is filed with the CVM (Comissão de Valores Mobiliários) in Brazil. Always consult with a licensed financial advisor to determine if an income-focused digital asset product aligns with your specific risk tolerance and long-term financial objectives.
