Strive Asset Management, co-founded by Vivek Ramaswamy, has officially filed to launch its Bitcoin Bond ETF with the U.S. Securities and Exchange Commission (SEC). This fund introduces a hybrid strategy allowing investors to gain access to crypto-assets through bonds.
What is Strive Bitcoin Bond ETF and How It Works
The Strive Bitcoin Bond ETF will be an actively managed fund investing in bonds issued by companies expected to direct proceeds toward Bitcoin purchases. The ETF will also use derivatives such as swaps and options for indirect access to Bitcoin-linked instruments. It focuses on 'Bitcoin bonds,' which are defined as assets linked to major Bitcoin proponents. The fund provides investors access to the crypto sphere without directly holding digital assets.
Strategy to Address Economic Risks
Since its founding in 2022, Strive Asset Management has emphasized addressing economic issues such as inflation, the global fiat debt crisis, and geopolitical uncertainties. The company believes Bitcoin is a valuable hedging tool against such risks, seeing it as a central element of a diversified portfolio. The Strive Bitcoin Bond ETF is also aimed at institutional investors seeking to integrate crypto-assets into their strategies.
MicroStrategy's Influence on the Fund's Strategy
A key element of Strive’s strategy involves MicroStrategy, the software company known for its aggressive stance on Bitcoin. Since 2020, MicroStrategy has invested over $27 billion into Bitcoin, making it one of the largest corporate holders of the cryptocurrency. The fund is expected to derive at least 80% of its exposure from 'Bitcoin bonds' of companies like MicroStrategy, whose market value has grown nearly 600% over the last year due to crypto investments.
The launch of the Strive Bitcoin Bond ETF promises investors new opportunities to participate in the crypto sphere without the risks of directly owning digital assets. Pending SEC approval, we look forward to observing the unfolding of Strive Asset Management's innovative strategy.
