Strive, founded by Vivek Ramaswamy, is set to launch a new exchange-traded fund (ETF) aimed at investing in convertible bonds issued by MicroStrategy and other companies leveraging Bitcoin. This move could broaden investor access to "Bitcoin bonds" globally.
What Will the Bitcoin Bond ETF Offer?
The ETF focuses on so-called Bitcoin bonds, which are securities such as convertible bonds issued by MicroStrategy. These bonds allow companies to allocate a portion of their proceeds to purchasing Bitcoin. The Strive Bitcoin Bond ETF will be actively managed, meaning investments will be selected and adjusted based on current market conditions. Strive is also considering using financial derivatives such as swaps and options to maximize returns.
Management fees for the fund have not been disclosed yet. However, actively managed funds typically charge higher fees than passive funds, which may be a factor for potential investors to consider.
MicroStrategy: A Pioneer in Bitcoin Bonds
MicroStrategy, led by Michael Saylor, is renowned for its Bitcoin investment strategy. Since 2020, the company has purchased over $27 billion worth of Bitcoin, driving its stock (MSTR) up by more than 2,200%, a performance that surpasses most publicly traded firms except Nvidia. MicroStrategy financed these acquisitions by issuing a mix of shares and convertible bonds, which under certain conditions can be converted into MSTR shares.
Other companies have followed suit. According to BitcoinTreasuries.net, corporate treasuries now hold approximately $56 billion worth of Bitcoin.
Political Context and Trump Connection
Strive’s founder, Vivek Ramaswamy, has strong political ties to Donald Trump, which could influence the future development of ETFs in the U.S. Although Ramaswamy ran against Trump in the 2023 Republican primaries, he later endorsed him and became involved in initiatives focused on government efficiency.
Trump’s victory in the 2024 presidential election could signal greater support for crypto ETFs. The newly elected president has already proposed key crypto advocates for leadership roles, including David Sacks as the “AI and Crypto Czar” and Paul Atkins as Chairman of the Securities and Exchange Commission.
The Future of Crypto ETFs
Analysts predict that Trump’s presidency will bring significant support for the listing of various crypto ETFs, including funds focused on altcoins like Solana, XRP, and Litecoin. As a result, 2024 could become a landmark year for the crypto industry and its integration into traditional financial markets.
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