Strive Asset Management, co-founded by Vivek Ramaswamy, has filed with the SEC to launch a Bitcoin Bond ETF, providing investors access to bonds linked to Bitcoin.
The New Strive Bitcoin Bond ETF
The Strive Bitcoin Bond ETF will be an actively managed fund investing in company-issued bonds intended to allocate proceeds towards Bitcoin purchases. It will have exposure to these bonds via financial instruments like swaps and options, allowing the ETF indirect exposure to Bitcoin-linked securities. The ETF aims to give investors access to Bitcoin-related assets without directly owning the digital currency.
Strategy to Address Economic Risks
Since its inception in 2022, Strive Asset Management has focused on broad economic issues such as inflation, global fiat debt crisis, and geopolitical uncertainties. Strive believes Bitcoin acts as a hedge against these risks, establishing itself as a core element of a diversified portfolio. The Strive Bitcoin Bond ETF is expected to attract both individual and institutional investors looking for a simple and understandable way to enter the cryptocurrency market.
MicroStrategy's Influence on Fund Strategy
A key element of Strive's strategy involves MicroStrategy, a company known for its aggressive Bitcoin acquisition strategy. Since 2020, MicroStrategy has invested over $27 billion into Bitcoin, making it one of the largest corporate holders of the cryptocurrency. Strive expects at least 80% of the ETF's assets to be comprised of bonds issued by companies like MicroStrategy.
The launch of the Bitcoin Bond ETF by Strive presents considerable interest to investors seeking to access the cryptocurrency market without directly holding Bitcoin. The fund offers an attractive strategy for diversification and economic risk mitigation.
