REX Shares Launches Bitcoin-Backed Corporate Treasury Convertible Bond ETF

On March 14, 2025, REX Shares, a Miami-based innovator in exchange-traded products, unveiled a groundbreaking financial instrument: the REX Bitcoin Corporate Treasury Convertible Bond ETF, trading under the ticker NASDAQ: BMAX.

REX Shares, a Miami-based innovator in exchange-traded products, today announced the launch of the REX Bitcoin Corporate Treasury Convertible Bond ETF (NASDAQ:BMAX). This groundbreaking fund, the first of its kind, provides investors with unique access to convertible bonds issued by companies that hold Bitcoin (BTC) on their balance sheets.

The timing of the launch highlights the increasing interest in corporate treasury Bitcoin strategies. Bitcoin price rose 2.1% to $83,400 on Monday, while Strategy (NASDAQ:FOUR) stock saw a 5.1% gain in morning trading.

This launch marks a significant moment as institutions like Strategy have been actively integrating Bitcoin into their treasuries, funded in part by convertible bonds and new stock offerings. Several other firms have followed suit, creating a niche asset class.

While these bonds offer interesting investment opportunities, they are often not accessible to individual investors due to their complexity and minimum investment tiers. However, BMAX solves this problem by bundling this strategy into a single, actively managed ETF, simplifying access for retail investors and financial advisors.

“We are excited to launch the REX Bitcoin Corporate Treasury Convertible Bond ETF, the first ETF to provide everyday investors with an investment in convertible bonds issued by companies that are deploying Bitcoin as a treasury asset,” said Greg King, CEO of REX Financial.

REX, which manages over $6 billion in assets, is known for its expertise in alternative-strategy ETFs. BMAX expands this offering, focusing on issuers like Strategy, a major player in Bitcoin-backed debt. The ETF provides a regulated vehicle for investors to gain exposure to the crypto market without directly investing in Bitcoin.

Convertible bonds combine features of both debt and equity securities. They offer a regular income stream like traditional bonds and can be converted into stock, allowing investors to participate in the company’s share price appreciation. In this case, they will benefit if Strategy’s stock price rises due to increased Bitcoin holdings or other factors.

This hybrid structure makes BMAX suitable for investors seeking to balance risk and reward. While Benares is known for its Bitcoin focus, it also faces risks common to all "Bitcoin Treasury Companies." These companies are subject to speculative hype, regulatory scrutiny, and accounting complexities like impairment losses when the Bitcoin price drops.

The prospectus for BMAX lists several risk factors, including the volatility of Bitcoin and the challenges faced by companies like Strategy. It highlights that Strategy is a key holding due to its large market capitalization.

Moreover, BMAX is subject to interest rate fluctuations, liquidity concerns, and tax implications. The fund will be taxed as a C-corporation, which is different from most ETFs.

Despite these risks, BMAX signals the evolving nature of the crypto market, where diverse investment vehicles are catering to a wider range of investor preferences. Distributed by Foreside Fund Services, LLC, and powered by REX’s expertise in alternative-strategy ETFs, BMAX brings a unique institutional investment strategy to the ETF market.