Strive Asset Management, led by Vivek Ramaswamy, has filed for a new exchange-traded fund (ETF) focusing on corporate bonds backed by Bitcoin.
Objective of the New ETF
The Strive Bitcoin Bond ETF is designed to actively invest in corporate bonds and derivatives such as swaps and options, targeting companies that allocate bond proceeds to Bitcoin.
Key Players and Companies in ETF
A significant component of the fund is expected to be stocks of MicroStrategy, led by Bitcoin advocate Michael Saylor. Strive anticipates constructing up to 80% of its exposure from 'Bitcoin bonds' issued by MicroStrategy and similar firms. Since 2020, MicroStrategy has invested over $27 billion in Bitcoin, and its stock (MSTR) has significantly increased in value.
Competition in Bitcoin ETF Sector
Competition in the Bitcoin ETF space is intensifying. Asset managers such as Calamos Investments, Grayscale Investments, and First Trust Portfolios have filed for Bitcoin ETFs specially designed to reduce digital asset volatility. These funds propose using strategies like 'buffered' mechanisms to protect against losses.
Strive Asset Management's drive to establish a new fund highlights the growing interest in Bitcoin investment through traditional financial instruments.
