By CentBit.Online – Crypto & Blockchain Expert, Bangladesh
Strive Asset Management, the firm founded by billionaire entrepreneur Vivek Ramaswamy, has submitted a regulatory filing to launch a new exchange-traded fund (ETF) targeting Bitcoin-linked convertible bonds. This innovative ETF reflects a growing trend of incorporating Bitcoin into corporate strategies.
Key Highlights of the Strive Bitcoin Bond ETF
The proposed Strive Bitcoin Bond ETF will invest in securities issued by companies such as MicroStrategy, which have utilized funds raised through convertible bonds to bolster their Bitcoin reserves.
What Are Bitcoin Bonds?
“Bitcoin Bonds,” as defined in Strive’s filing on December 26, are convertible securities issued by companies that use the proceeds to purchase Bitcoin. These bonds offer investors the option to convert their holdings into company shares under specific conditions, providing both equity exposure and indirect Bitcoin investment.
To enhance exposure, the ETF may also utilize financial derivatives like swaps and options. While the fund’s management fee remains undisclosed, actively managed ETFs like this typically come with higher fees compared to passive index funds.
MicroStrategy: A Case Study in Bitcoin Adoption
MicroStrategy, a leader in corporate Bitcoin adoption under the stewardship of Michael Saylor, has purchased approximately $27 billion in Bitcoin since 2020. These acquisitions, funded through equity offerings and convertible bonds, have driven the company’s stock (MSTR) to surge over 2,200%, outpacing most large-cap firms except Nvidia.
Inspired by MicroStrategy, corporate treasuries collectively hold approximately $56 billion in Bitcoin, showcasing the cryptocurrency’s growing appeal among traditional businesses.
Vivek Ramaswamy’s Vision and Strive’s Role
Founded in 2022, Strive focuses on empowering investors through strategies rooted in capitalist principles. Ramaswamy, who initially competed against Donald Trump in the 2023 Republican primaries, later endorsed him and joined forces with Elon Musk in the Department of Government Efficiency (DOGE), a private initiative to reduce government waste.
As an ally of President-elect Donald Trump, Ramaswamy is positioned to capitalize on a pro-crypto regulatory environment. Trump’s administration has signaled support for the cryptocurrency sector, with plans to accelerate the approval of crypto ETFs, including those focused on altcoins like Solana, XRP, and Litecoin.
Trump’s Pro-Crypto Moves
The appointment of David Sacks as Trump’s “AI and crypto czar” and Paul Atkins as a nominee for SEC chair reflect the administration’s commitment to fostering a crypto-friendly regulatory framework.
Bitwise’s Bitcoin Standard ETF
Strive isn’t the only firm innovating in the crypto ETF space. Bitwise Asset Management has filed for the Bitcoin Standard Corporations ETF, targeting publicly traded companies with substantial Bitcoin reserves. To qualify, companies must hold at least 1,000 BTC, have a market capitalization of $100 million or more, daily liquidity of $1 million, and a public float below 10%.
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