Strive, an asset management firm founded by Vivek Ramaswamy, has filed a request to create an ETF focusing on convertible bonds issued by MicroStrategy and other Bitcoin investment players.
Objective of Strive's ETF
According to a filing on December 26, the ETF, known as the Strive Bitcoin Bond ETF, aims to offer exposure to "Bitcoin Bonds"—convertible securities issued by firms like MicroStrategy that use the proceeds to buy Bitcoin.
MicroStrategy's Role in Bitcoin Market
The actively managed ETF will invest directly in these bonds or use financial derivatives such as swaps and options. MicroStrategy, led by co-founder Michael Saylor, has spent about $27 billion buying Bitcoin since 2020, using a mix of new stock and convertible bonds. These bonds are attractive because they offer low or no interest but can convert to MicroStrategy stock under certain conditions.
Context and Prospects for Companies
Other companies have followed suit, and corporate treasuries now hold around $56 billion in Bitcoin. Ramaswamy, a strong ally of President-elect Donald Trump, founded Strive in 2022 to help investors leverage capitalism. As Trump moves toward a more crypto-friendly stance, many analysts expect the approval of several proposed crypto ETFs. With crypto leadership shifting in the U.S., the approval of Strive's Bitcoin Bond ETF could be the next big step for crypto investments.
The launch of Strive's ETF could set a new milestone in the world of crypto investments, given its potential impact on the bond market and the interest of major companies in Bitcoin.