According to Cointelegraph, Strive, an asset management firm established by Vivek Ramaswamy, has submitted a request to United States regulators to list an exchange-traded fund (ETF) focused on convertible bonds from MicroStrategy and other corporate Bitcoin (BTC) investors. This request was detailed in a filing dated December 26. The proposed ETF aims to provide exposure to 'Bitcoin Bonds,' which are defined as convertible securities issued by MicroStrategy or other companies that intend to allocate a significant portion of their proceeds to purchasing Bitcoin. Strive plans for the ETF to be actively managed, gaining exposure to these 'Bitcoin Bonds' either directly or through financial derivatives such as swaps and options. However, the management fee for investors has not yet been disclosed, though actively managed funds typically incur higher fees than passive index funds.
MicroStrategy, since 2020, has invested approximately $27 billion in Bitcoin as part of a corporate treasury strategy led by co-founder Michael Saylor. This strategy has resulted in its stock, MSTR, appreciating by over 2,200%, surpassing nearly all major public companies except Nvidia. The company has financed these Bitcoin acquisitions through a combination of new stock issuance and convertible bonds, which offer low or no interest but can convert to MSTR shares under specific conditions. This approach has been emulated by other companies, leading corporate treasuries to hold around $56 billion worth of BTC, as reported by BitcoinTreasuries.net.
Vivek Ramaswamy, who founded Strive in 2022, is known for his alliance with President-elect Donald Trump. Strive's mission, as stated on its website, is to empower investors to 'harness the power of capitalism.' In 2023, Ramaswamy, who amassed most of his estimated $1 billion net worth from founding the biotechnology startup Roivant Sciences, ran against Trump in the Republican presidential primary before endorsing him. In November, Ramaswamy joined forces with Tesla founder Elon Musk to lead the Department of Government Efficiency (DOGE), a private initiative aimed at reducing government waste. Industry analysts view Trump's presidential victory as a positive signal for the approval of several proposed crypto ETFs in the US. In 2024, asset managers have filed numerous regulatory applications to list ETFs containing altcoins like Solana (SOL), XRP (XRP), and Litecoin (LTC). Following his election win on November 5, Trump has suggested appointing pro-crypto leaders to key regulatory positions, including naming former PayPal COO David Sacks as his 'AI and crypto czar' and former commissioner Paul Atkins as his choice for SEC chair.