Strive Asset Management, co-founded by Vivek Ramaswamy, filed with the SEC to launch a Bitcoin Bond ETF. The actively managed fund will focus on bonds linked to Bitcoin.
Features of Strive's Bitcoin Bond ETF
The Strive Bitcoin Bond ETF will be an actively managed fund investing in company-issued bonds expected to direct proceeds towards Bitcoin purchases. It will also gain exposure to these bonds via derivatives like swaps and options, providing indirect access to Bitcoin-linked financial instruments. The ETF is designed to focus on 'Bitcoin bonds,' assets linked to firms with major Bitcoin commitments, offering investors access to Bitcoin-related assets without directly holding the digital asset.
Risk Management Strategy
Strive Asset Management, established in 2022, emphasizes addressing economic issues like inflation and geopolitical instability. Strive sees Bitcoin as a valuable hedge against these risks, making it central to a diversified portfolio. Ramaswamy highlights Bitcoin's role in long-term investment strategies. The Bitcoin Bond ETF is expected to attract both individual and institutional investors seeking exposure to cryptocurrency without the complexities of direct ownership.
MicroStrategy’s Role in Fund Strategy
A key element of Strive’s strategy involves MicroStrategy, the company famous for its aggressive Bitcoin acquisitions. Since 2020, MicroStrategy has invested over $27 billion into Bitcoin, becoming a major corporate holder of cryptocurrency. Strive's ETF expects to derive at least 80% exposure from Bitcoin bonds issued by companies like MicroStrategy, which has seen its share price surge due to Bitcoin investments.
Strive's ETF will be listed on NYSE once SEC approval is obtained, adhering to U.S. regulatory standards, which enhances stability and access to Bitcoin growth potential.
