On April 16, VanEck's head of digital assets research has proposed a new debt tool called "BitBonds", which combines U.S. Treasury bonds with Bitcoin exposure as a new strategy to manage the government's upcoming $14 trillion refinancing needs. This concept was proposed at the Strategic Bitcoin Reserves Summit and aims to address the demand for sovereign funds and investors' demand for inflation protection. Bitcoin bonds will be designed as 10-year securities, consisting of 90% of traditional U.S. Treasury bond exposure and 10% of Bitcoin, which is partly funded by bond sales proceeds. When maturity occurs, investors will receive the full value of the U.S. Treasury portion, i.e. $90 per $100 bond, plus the value of the Bitcoin distribution. In addition, investors will receive all the gains in Bitcoin until their maturity rate reaches 4.5%. Any gains beyond this threshold will be split equally by the government and bondholders. Sigel said that for investors who believe in Bitcoin, bit bonds will be a "convex bet" as the tool will provide asymmetric upside potential while retaining a layer of risk-free returns. However, its structure means that investors will bear all downside risks to Bitcoin exposure. Previously, the Bitcoin Policy Institute (BPI) proposed to issue Bitcoin bonds (BitBonds) to help the United States repay Treasury bonds.