Strive Asset Management has filed with the SEC to launch a Bitcoin Bond ETF, investing in cryptocurrency-linked bonds.
Description of the Bitcoin Bond ETF
The Strive Bitcoin Bond ETF will be an actively managed fund investing in company bonds directing proceeds toward Bitcoin purchases. It will also use derivatives to indirectly increase Bitcoin exposure. The focus is on 'Bitcoin bonds' tied to firms significantly involved in the cryptocurrency market. Planned investments in short-term assets like treasuries ensure liquidity and stabilization.
Economic Risks and Bitcoin
Since its founding in 2022, Strive Asset Management has focused on addressing broader economic issues, such as inflation and the global debt crisis. Ramaswamy highlights Bitcoin as a valuable hedging tool and an essential part of a diversified portfolio. The new ETF is geared towards investors seeking crypto exposure without directly holding Bitcoin.
MicroStrategy's Influence on Fund Strategy
Strive's strategy heavily relies on MicroStrategy, a company that has actively invested in Bitcoin since 2020. The firm has put more than $27 billion into the cryptocurrency, making it one of the largest corporate holders. At least 80% of the ETF's exposure is expected to come from Bitcoin bonds issued by companies like MicroStrategy.
Strive Asset Management aims to offer investors access to Bitcoin through a new ETF, emphasizing its role as a hedge against economic risks and the growing popularity of cryptocurrency.
