Strive, a company that manages assets and was established by Vivek Ramaswamy, has submitted paperwork to American authorities to introduce an exchange-traded fund (ETF) focused on investing in convertible bonds linked to Bitcoin.
A recent regulatory filing dated December 26 reveals plans for the Strive Bitcoin Bond ETF, which will focus on investing in debt securities issued by firms such as Micro Strategy that have utilized convertible bond proceeds to acquire Bitcoin as a key component of their corporate treasury management.
The actively managed ETF aims to offer investor’s access to “Bitcoin Bonds,” which are described in the document as convertible securities issued by companies like Micro Strategy.
Give investors the option to exchange them for a predetermined number of shares in the issuing company.
Investors can exchange these bonds for company stocks based on certain criteria, with the resulting funds being utilized for purchasing Bitcoin.
In addition, Strive aims to provide access to these bonds through various financial instruments, including derivatives like swaps and options.
The management fee for the fund has not been publicly higher than that of a passive index fund, given the typical fee structure of actively managed ETFs.
Under the guidance of co-founder Michael Saylor, Micro Strategy, a trailblazer in corporate Bitcoin investment, has allocated roughly $27 billion to Bitcoin purchases since 2020.
A combination of equity offerings and convertible bonds has been used by the company to fund these purchases.
The strong focus on Bitcoin by the company has driven the stock price of MSTR to increase by more than 2,200%, surpassing the performance of many well-established public companies, particularly those in the technology sector, except for Nvidia.
Inspired by Micro Strategy’s example, companies have amassed a substantial Bitcoin reserve, with corporate treasuries now holding approximately $56 billion in the crypto currency, as reported by Bitcoin Treasuries net.
2022, Ramaswamy, a wealthy business leader and supporter of President-elect Donald Trump, founded Strive with the mission of equipping investors with market-based solutions that harness the power of capitalism.
After a short campaign against Trump in the 2023 Republican presidential primary, he changed course and supported Trump. He then partnered with Elon Musk in the Department of Government Efficiency (DOGE), a private project focused on cutting down government inefficiencies.
Crypto currency insiders predict that Trump’s presidency may expedite the green lighting of multiple crypto currency exchange-traded funds (ETFs) currently awaiting approval, including those centered on alternative crypto currencies such as Solana, XRP, and Lite coin.
Trump’s support for crypto currency is clear in his selection of David Sacks, PayPal’s former chief operating officer, to oversee artificial intelligence and crypto currency initiatives, and his nomination of Paul Atkins, a former SEC commissioner, to lead the Securities and Exchange Commission.
Bitwise Seeks Approval for Exchange-Traded Fund Tied to Bitcoin.
Bitwise has applied to introduce the Bitcoin Standard Corporations ETF in addition to Strive. This ETF will concentrate on publicly traded companies that have substantial Bitcoin holdings.
Based on a recent official document, companies that meet certain criteria must possess a minimum of 1,000 Bitcoin in their corporate reserves, a market value of no less than $100 million, daily trading volume exceeding $1 million, and a public float of less than 10%.
