Strive Plans to Launch "Bitcoin bond" ETF

Published: January 6, 2025|Last updated: January 6, 2025

Strive Asset Management plans to launch a "Bitcoin bond" ETF
The company has filled out an application with the SEC

Strive Asset Management is about to launch an exchange-traded fund that will invest in bonds of companies investing in Bitcoin.

The company is targeting MicroStrategy, whose active and consistent investment in Bitcoin can make bonds valuable and sustainable.

More About Strive's Initiative to Launch a Bitcoin Bond ETF

The ETF manager, co-founded and majority-owned by Vivek Ramaswamy has already applied for the Strive Bitcoin Bond ETF with the Securities and Exchange Commission.

The ETF will presumably invest through derivatives such as swaps and options, and through that gain access to convertible securities issued by companies that Strive "expects will invest all or a significant portion of the proceeds to purchase Bitcoin."

The application states:

"Under normal circumstances, at least 80% of the notional exposure of the fund will be to Bitcoin bonds."

This is primarily about companies like MicroStrategy, whose systematic Bitcoin purchases are indicative of the entire crypto industry.

More specifically, the application states:

"While the fund will not directly invest in digital assets, it will be subject to the risks associated with Bitcoin by virtue of its investments in options contracts that reference MicroStrategy or other Bitcoin-related equity, debt, and convertible securities."

Matthew Cole, chief executive and chief investment officer of Strive, will manage the fund alongside portfolio managers Jeffrey Sherman and Randol Curtis, who is also the chief investment officer of Strive’s wealth management business.

Conclusions

Donald Trump's victory and his crypto initiatives, in particular the appointment of Vivek Ramaswamy to the new Department of Government Efficiency continue the crypto course. This is the next round of development of crypto ETFs and actual SEC changes with possible shifts in regulations to CFTC that may strengthen this development.

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