According to Zhito Finance APP, as 2024 comes to an end, the U.S. Securities and Exchange Commission has received a large number of filings for novel financial products related to cryptocurrencies, indicating that 2025 will see more cryptocurrency-centered funds. These products include ProShares' Bitcoin-priced S&P 500 Index ETF, Strive Asset Management and REX Shares' Bitcoin convertible bond fund, as well as Volatility Shares' inverse and leveraged Solana funds. Bloomberg Intelligence's Athanasios Psarofagis believes this is a continuing trend of incorporating cryptocurrency strategies into ETFs, and many such products are expected to emerge in 2025.
The year 2024 will be a glorious one for the cryptocurrency sector, with Bitcoin prices soaring over 120%, breaking the $100,000 mark. This growth is partly due to the support from the incoming president Donald Trump for the industry, as the market expects the Trump administration's loose regulatory stance to promote the development of the cryptocurrency field. According to data, the enthusiasm around Trump's election has driven annual inflows into BlackRock's Bitcoin ETF to exceed $37 billion, ranking third among all funds.
MicroStrategy co-founder Michael Saylor is also seizing the opportunity provided by the soaring cryptocurrency prices to increase his purchases of Bitcoin. MicroStrategy funds its Bitcoin purchases through a combination of new equity and convertible bond sales, and other companies have similar plans.
In contrast, the REX ETF plans to invest most of its assets in convertible bonds issued by companies that hold Bitcoin, while Strive proposes to launch a fund that invests in derivatives such as swaps and options, to invest in convertible securities issued by MicroStrategy or other companies with similar investment strategies.
Todd Sohn, an ETF strategist at Strategas, points out that cryptocurrencies, as an emerging asset class, are increasingly favored by retail investors, and Wall Street excels at creating supply when demand is high. Thus, the scope of cryptocurrency ETFs is evolving, from futures-based, spot, thematic, to now convertible types, both of which are very suitable for MicroStrategy and other similar participants.