Strive, the investment firm founded by Vivek Ramaswamy, has officially filed with U.S. regulators to launch a new exchange-traded fund (ETF) that aims to invest in Bitcoin-linked convertible bonds.
According to a filing made on December 26, the proposed Strive Bitcoin Bond ETF will focus on securities issued by companies like MicroStrategy, which have raised capital through convertible bonds to fund significant Bitcoin purchases as part of their corporate treasury strategies.
Targeting Bitcoin-Backed Convertible Bonds
The actively managed ETF will offer exposure to what it defines as “Bitcoin Bonds.” These are convertible securities issued by firms such as MicroStrategy, which use the proceeds from bond sales to acquire Bitcoin. The bonds in question allow holders to convert them into company stock under specific conditions, while the capital raised is directed towards Bitcoin acquisitions.
In addition to holding these bonds directly, Strive’s fund will also gain exposure through financial derivatives, including swaps and options, enabling further flexibility in accessing Bitcoin-linked securities.
While the fund’s management fee has not been disclosed, actively managed ETFs typically come with higher costs compared to passive index funds.
MicroStrategy’s Bitcoin Strategy
MicroStrategy, under the leadership of its co-founder Michael Saylor, has been a key player in the corporate adoption of Bitcoin, investing approximately $27 billion in the cryptocurrency since 2020. The company has financed these Bitcoin acquisitions through a combination of equity offerings and convertible bonds.
MicroStrategy’s aggressive Bitcoin strategy has paid off, with its stock, MSTR, surging over 2,200% in value, significantly outperforming most large-cap public companies, including major tech firms, except for Nvidia.
As of now, corporate treasuries collectively hold around $56 billion worth of Bitcoin, according to data from BitcoinTreasuries.net.
Strive’s Vision and Ramaswamy’s Background
Strive was founded by Vivek Ramaswamy in 2022, with the mission of empowering investors by promoting capitalism-driven strategies. Ramaswamy, a billionaire entrepreneur, previously ran in the 2023 Republican presidential primaries before endorsing Donald Trump. He is also involved in Department of Government Efficiency (DOGE), a private initiative co-led with Elon Musk aimed at reducing government waste.
In the broader political context, experts believe that Trump’s potential return to the White House could speed up the approval process for various crypto-related ETFs. This includes funds focused on altcoins like Solana, XRP, and Litecoin. Trump has demonstrated a pro-crypto stance through his appointment of David Sacks, former COO of PayPal, as his “AI and crypto czar,” and his nomination of Paul Atkins, former SEC commissioner, as a candidate for SEC chair.
Competing Bitcoin ETF Filings
Strive is not the only firm pursuing a Bitcoin-focused ETF. Bitwise, another investment management firm, has also filed for the Bitcoin Standard Corporations ETF, which will invest in publicly traded companies with significant Bitcoin holdings. The ETF will target companies that have at least 1,000 Bitcoin in their treasuries, a market capitalization of at least $100 million, and daily liquidity of $1 million or more. Additionally, the fund will require that the companies have a free float of less than 10%.
As the landscape of crypto-related financial products continues to evolve, Strive’s proposed ETF marks a significant step in bridging traditional financial instruments with Bitcoin, catering to investors who are looking for exposure to Bitcoin’s corporate adoption in a structured and regulated format.
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