On April 16th, VanEck's digital asset research director Matthew Sigel proposed a new type of debt instrument called "BitBonds", which combines US Treasury bonds with Bitcoin exposure as a new strategy to manage the upcoming $14 trillion refinancing needs of the government. This concept was presented at the Strategic Bitcoin Reserve Summit, aiming to address sovereign fund needs and investors' demand for inflation protection.

BitBonds will be designed as 10-year securities, consisting of 90% traditional US Treasury bond exposure and 10% Bitcoin, with the Bitcoin portion funded by bond sale proceeds. Upon maturity, investors will receive the full value of the US Treasury portion, i.e. $90 for every $100 bond, plus the value of the Bitcoin allocation. In addition, investors will receive all upside gains from Bitcoin until its yield at maturity reaches 4.5%. Any gains beyond this threshold will be split between the government and bondholders. Sigel stated that for investors who believe in Bitcoin, BitBonds will be a "convex bet" as the instrument will provide asymmetric upside potential while retaining a layer of risk-free return. However, its structure means that investors will bear all downside risk from Bitcoin exposure.

Previously, the Bitcoin Policy Research Institute (BPI) proposed issuing BitBonds to help the US repay its national debt.