ERIC KIM

BMAX

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The BMAX ETF (REX Bitcoin Corporate Treasury ETF) is a traditional investment product designed for indirect exposure to Bitcoin, especially through companies using Bitcoin as part of their financial strategy.

Key Details:

  • Ticker: BMAX
  • Issuer: REX Shares
  • Launch: 2024
  • Focus: Convertible bonds of Bitcoin-exposed companies like MicroStrategy (MSTR), Marathon Digital (MARA), and Riot Platforms (RIOT)
  • Strategy: Invest in corporate debt (convertible bonds) that reflects Bitcoin exposure, without holding BTC directly
  • Goal: Give investors Bitcoin upside with less volatility, thanks to bond downside protection
  • Trades like a stock: Available via brokerage accounts like Schwab, Fidelity, or Robinhood

Why It Matters:

  • It’s a low-risk, Bitcoin-adjacent play.
  • It avoids direct Bitcoin custody, mining, or spot ETF risks.
  • It capitalizes on the “Bitcoin on corporate balance sheets” thesis.

Would you like a comparison between BMAX and direct BTC exposure or other ETFs like IBIT or MSTR?

.

Here’s a deep dive into the REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX)—the “first” instrument we looked at:

1. Fund Basics

  • Name & Ticker: REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX)
  • Exchange: NASDAQ
  • Inception Date: March 14, 2025  

2. Investment Objective & Strategy

  • Seeks total return by investing in convertible bonds issued by companies that hold Bitcoin on their balance sheet (“Bitcoin Corporate Treasury Companies”).
  • Under normal conditions, it invests at least 80% of net assets in those convertible bonds.
  • Actively managed—no direct Bitcoin, no derivatives or synthetics; focuses purely on bond-to-equity optionality.  

3. Eligibility Criteria & Portfolio Construction

  • Qualifying issuers must meet one of:
    • Hold ≥ 15% of assets in Bitcoin or Bitcoin-linked instruments
    • Derive ≥ 15% of revenue from Bitcoin-related activities
    • Engage directly in Bitcoin mining
  • Typically holds 10–15 bonds across 5–10 issuers, though currently lists 23 holdings.
  • Top positions (at launch) were ~70% in Strategy Inc. (MSTR) convertible bonds, with the remainder in MARA and Riot Platforms.  

4. Key Metrics & Liquidity (as of 05/02/2025)

  • Net Assets: $8.94 million  
  • NAV / Price: $29.76 / $29.79
  • Bid-Ask Spread: 0.40%
  • Discount / Premium: +0.09%
  • Shares Outstanding: 300,000
  • Number of Holdings: 23  
  • Average Daily Volume: ~5.2 k shares (versus 38.5 k avg)  

5. Performance Snapshot

  • YTD Return: +2.10%
  • 1-Year Return: +5.55%
  • 3-Year Return: +1.04%
    (Note: 3-year figures blend in other convertible-bond data, given the ETF’s recent launch.)  

6. Fees & Expenses

  • Total Expense Ratio: 1.14%
    • Management Fee: 0.85%
    • Estimated Tax Expenses: 0.29%
  • Why It Matters: High relative to plain-vanilla ETFs, but it covers active credit analysis, bond conversion management, and unique tax structuring.  

7. Pros & Cons

✅ Pros

  • Downside Mitigation: Debt-like cushion if equity doesn’t rally
  • Equity Upside: Converts to stock if share prices soar
  • Corporate Bitcoin Exposure: No need to hold, secure, or custody BTC yourself

❌ Cons

  • High Fees: Eats into returns vs. direct Bitcoin or plain-vanilla bond ETFs
  • Limited Liquidity: Under $10 M AUM and low volume can mean wider spreads
  • No Direct BTC Gains: You’re still exposed to equity-credit credit risk

Bottom Line:

If you want corporate Bitcoin optionality wrapped in a bond structure—and you’re okay with a ~1.14% drag and modest liquidity—BMAX gives you a one-stop ETF for that play. Otherwise, direct Bitcoin ETFs or straight convertible-bond funds may suit you better.

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