Strive Asset Management, co-founded by Vivek Ramaswamy, has officially filed to launch a Bitcoin Bond ETF. The fund will invest in company-issued bonds expected to direct proceeds toward Bitcoin purchases.
Features of Bitcoin Bond ETF
Strive's Bitcoin Bond ETF will be an actively managed fund investing in bonds of companies that are expected to direct proceeds toward Bitcoin purchases. The ETF will also use derivatives such as swaps and options to gain indirect exposure to Bitcoin-linked instruments. The focus will be on 'Bitcoin bonds,' defined as assets linked to firms significantly involved in Bitcoin. The fund aims to provide investors access to Bitcoin-related assets without directly holding the cryptocurrency. Upon receiving SEC approval, the ETF will be listed on the NYSE and will adhere to regulatory standards.
Strategy to Address Economic Risks
Since its founding in 2022, Strive Asset Management has emphasized addressing broader economic concerns, including inflation, the global fiat debt crisis, and geopolitical uncertainties. The Bitcoin Bond ETF is seen as a mechanism for diversifying a portfolio to hedge against these risks. Vivek Ramaswamy has been vocal about Bitcoin’s role in long-term investment strategies, and Strive expects their fund to appeal to both individual and institutional investors looking for exposure to cryptocurrency without the complexities of direct ownership.
MicroStrategy’s Influence on the Fund’s Strategy
A key element of Strive’s strategy involves MicroStrategy, known for its aggressive Bitcoin acquisition strategy. Since 2020, MicroStrategy has invested over $27 billion into Bitcoin, making it one of the largest corporate holders of the cryptocurrency. Strive expects Bitcoin bonds issued by companies like MicroStrategy to make up at least 80% of their ETF. Over the past year, MicroStrategy's share price has surged nearly 600% largely due to its Bitcoin investments.
Strive's Bitcoin Bond ETF aims to provide a new vehicle for those wanting to engage with the growing cryptocurrency market without directly holding Bitcoin. Collaborating with companies such as MicroStrategy highlights the fund's strategic investment approach towards cryptocurrency assets.
