Strive Asset Management, founded by Vivek Ramaswamy, has filed a request with US regulators to launch a new exchange-traded fund (ETF) designed to provide exposure to “Bitcoin Bonds,” according to a Dec. 26 filing.
The Strive Bitcoin Bond ETF will target convertible bonds issued by companies like MicroStrategy that have invested significant portions of their capital in Bitcoin (BTC). These companies utilize the proceeds of such bonds to purchase Bitcoin.
Bitcoin bond ETF
The fund will be actively managed, with its exposure to Bitcoin Bonds achieved either directly or via financial instruments such as swaps and options. Although the management fee has not been disclosed, active funds typically have higher fees compared to passively managed funds.
MicroStrategy, led by co-founder Michael Saylor, began purchasing Bitcoin in 2020 as part of a corporate treasury strategy. The company has since spent around $27 billion acquiring Bitcoin, a move that has driven its stock, MSTR, up by over 2,200%, outperforming almost every other major public company, including Nvidia.
The company has financed these Bitcoin purchases through a mix of issuing new stock and convertible bonds. These bonds typically offer low or no interest but can be converted into shares under certain conditions. Other corporations have followed suit, and corporate treasuries now collectively hold approximately $56 billion worth of Bitcoin, according to BitcoinTreasuries.net.
Favorable environment
Ramaswamy, a vocal supporter of President-elect Donald Trump, founded Strive in 2022 to help investors leverage the benefits of capitalism. Although Ramaswamy initially ran in the Republican presidential primaries, he later endorsed Trump.
Strive’s approach aims to provide innovative financial products for investors, aligning with Ramaswamy’s broader goals of disrupting traditional industries. The filing for the Strive Bitcoin Bond ETF comes as industry experts predict that a Trump administration will support a more favorable regulatory environment for crypto.
Following Trump’s November election victory, the US crypto industry expects key regulatory changes, including the appointment of figures such as former PayPal COO David Sacks as the “AI and crypto czar.”
This filing is part of a broader trend, as multiple asset managers have sought approval for various crypto-focused ETFs, including those that will provide exposure to altcoins like Solana, XRP, and Litecoin. These filings highlight the growing interest in cryptocurrency-based investment vehicles in the wake of regulatory changes.
