Strive Files for ETF Focused on Bitcoin-Linked Convertible Bonds
Strive, an asset management firm founded by Vivek Ramaswamy, has filed with U.S. regulators to launch an exchange-traded fund (ETF) aimed at investing in Bitcoin-linked convertible bonds.
According to a December 26 filing, the proposed Strive Bitcoin Bond ETF will target securities issued by companies like MicroStrategy, which have used proceeds from convertible bonds to purchase Bitcoin as part of their corporate treasury strategies.
The actively managed ETF seeks to provide exposure to “Bitcoin Bonds,” defined in the filing as convertible securities issued by MicroStrategy or similar firms.
Bonds Allow Holders to Convert Them into Company Shares
These bonds allow holders to convert them into company shares under specific conditions, while the proceeds are used to buy Bitcoin.
Strive also plans to include exposure to these bonds through financial derivatives, such as swaps and options.
Although the fund’s management fee has not been disclosed, actively managed ETFs typically carry higher fees than passive index funds.
MicroStrategy, a pioneer in corporate Bitcoin adoption, has invested approximately $27 billion in Bitcoin since 2020 under the leadership of its co-founder, Michael Saylor.
The company has financed these purchases through a mix of equity offerings and convertible bonds.
Its aggressive Bitcoin strategy has propelled its stock, MSTR, to gain over 2,200% in value, outperforming most large-cap public companies, including tech giants, with the exception of Nvidia.
Following MicroStrategy’s lead, corporate treasuries collectively hold around $56 billion worth of Bitcoin, according to BitcoinTreasuries.net.
Ramaswamy, a billionaire entrepreneur and ally of President-elect Donald Trump, launched Strive in 2022 with the goal of empowering investors through capitalism-driven strategies.
Though he briefly campaigned against Trump in the 2023 Republican presidential primary, he later endorsed Trump and joined Elon Musk in the Department of Government Efficiency (DOGE), a private initiative aimed at reducing government waste.
Industry experts anticipate that Trump’s presidency could accelerate the approval of several pending crypto ETFs, which include funds focusing on altcoins like Solana, XRP, and Litecoin.
Trump’s pro-crypto stance is evident in his appointment of David Sacks, former COO of PayPal, as his “AI and crypto czar,” and Paul Atkins, a former commissioner, as his nominee for SEC chair.
Bitwise Files for Bitcoin-Focused ETF
Aside from Strive, Bitwise has also filed to launch the Bitcoin Standard Corporations ETF, which will focus on publicly traded companies holding significant Bitcoin reserves.
According to a recent regulatory filing, eligible companies must have at least 1,000 Bitcoin in their corporate treasuries, a market capitalization of at least $100 million, daily liquidity of $1 million or more, and a free float of under 10%.
Bitwise files for Bitcoin Standard Corporations ETF…
Would own stocks of companies that have adopted the “bitcoin standard”, which they define as holding at least 1,000 btc in corporate treasury.
The btc treasury operations virus is spreading. pic.twitter.com/me0XXX9a6g
— Nate Geraci (@NateGeraci) December 26, 2024
Source: cryptonews.com
