Strive, an asset management firm founded by Vivek Ramaswamy, has filed with U.S. regulators for approval to launch an exchange-traded fund (ETF) focused on convertible bonds issued by Bitcoin-investing companies, including MicroStrategy. The ETF aims to offer exposure to what Strive calls “Bitcoin Bonds,” which are convertible securities issued by MicroStrategy and other firms that direct significant portions of their capital toward Bitcoin acquisition.
About Strive’s Bitcoin Bond ETF
The Strive Bitcoin Bond ETF will be actively managed and will include exposure to these bonds either directly or via financial instruments like swaps and options. While the management fee remains unspecified, active funds typically carry higher costs than passive index funds.
Strive files for “Bitcoin Bond” ETF…
Would seek exposure to convertible securities issued by MicroStrategy. pic.twitter.com/ybJjbVFWUN
— Nate Geraci (@NateGeraci) December 26, 2024
MicroStrategy, under the leadership of co-founder Michael Saylor, began purchasing Bitcoin in 2020, investing around $27 billion into the cryptocurrency. As a result, its stock, MSTR, has experienced a remarkable increase of over 2,200%, surpassing the performance of nearly every major public company, except Nvidia.
To fund its Bitcoin purchases, MicroStrategy has used a mix of newly issued stock and convertible bonds. These bonds typically offer low or no interest, but can be converted into MSTR shares under certain conditions. This strategy has been adopted by other companies, contributing to a growing trend of corporate treasuries holding significant amounts of BTC. Currently, businesses collectively possess an estimated $56 billion worth of BTC.
Through its new ETF, Strive seeks to capitalize on this trend, offering investors a vehicle to gain exposure to Bitcoin-focused corporate bonds while actively managing the ETF’s holdings.
Also Read: Swiss Bitcoin Platform Relai Adds $1.24M BTC Over Christmas
