Lets simplify this thing.
Once we get the legal framework, we need a seed capital. With it the BTC Fund will buy a certain quantity A to be able to maintain liquidity. The Fund will hold as many bitcoins as shares/bonds issued (lets say it holds B bitcoins/bonds), but the quantity A will be something apart. Whenever the Fund issues shares in the primary market what happens is that part of this btc capital from A goes to the B holdings and that new bonds/shares are issued in the primary market. Then with the money received by selling those bonds/shares the Fund will buy enough bitcoins to restore the reserves of A to the initial value.
In fact the price of the bonds in the primary market will have to be calculated by the Fund so they not only get enough btcs to restore the number A, but to be able to pay the people that work for the corporation.
Am I wrong?
Once we get the legal framework, it pretty much states how the trading of Bitcoin bonds will occur and how Bitcoin will be held as security deposits for the Bitcoin bond.
Here is how this can work simplified:
1) Company gets incorporated and all the directors, shareholders gets nominated etc.
2) Company issues X amount of bonds through a stock exchange (This can be NYSE, LSE, NASDAQ, Hang Seng, CAC, DAX or whatever we pick (however we have a stock exchange we prefer)).
3) To purchase a Bitcoin bond, you can either trade it by contacting the market makers that trade on the given stock exchange, or purchase it through the company by sending them a wire transfer/pay with card, and allowing the company that issued to Bond to fulfill the order, ie. contact the market makers.
4) Company receives X amount of $/€/£ and purchases Bitcoin for that amount at any given time.
5) Bitcoin price rises as soon as company makes a purchase of Bitcoin, from liquidity they received from a Bitcoin bond
6) Once all X amount of bonds are issued people can start trading them among themselves, thus creating a second market of how much Bitcoin is valued, thus allowing for hedging between Bitcoin itself and the Bond.
Complications for law firm that has to draft a legal framework which can be accepted by the governing legislation of the particular stock exchange
1) Security of the investment as it is based upon a non regulated entity, ie. Bitcoin
2) If a price crash occurs, and once again in an unregulated market, how can company ensure investors of their Bond value
3) Maturity on Bond, if any
4) Zero-coupon Bond or flat payout
5) Money laundry
Do remember that the last thing the established stock market wants is another wild west OTC/Pink Sheets derivate or bearer bond, that further allows money laundry and anonymity.