Strive files for Bitcoin bond ETF to offer exposure to MicroStrategy

Strive, the asset management firm founded by Vivek Ramaswamy, has filed for approval from U.S. regulators to launch an exchange-traded fund (ETF) focusing on convertible bonds issued by MicroStrategy and other companies that invest heavily in Bitcoin (CRYPTO:BTC).

The proposed Strive Bitcoin Bond ETF aims to provide exposure to "Bitcoin Bonds," which are convertible securities issued by companies like MicroStrategy, known for using corporate funds to purchase Bitcoin.

According to the filing, these companies use the proceeds from these bonds to buy significant amounts of Bitcoin.

Strive plans to actively manage the ETF, gaining exposure to Bitcoin Bonds either directly or through financial derivatives such as swaps and options.

While the management fee has not been disclosed, actively managed funds generally carry higher fees compared to passive index funds.

MicroStrategy, led by co-founder Michael Saylor, has spent around $27 billion purchasing Bitcoin since 2020.

The company's stock, MSTR, has surged over 2,200% as its Bitcoin holdings grew, outperforming most other large public companies except Nvidia.

To fund these purchases, MicroStrategy issued a mix of stock and convertible bonds, which offer low or no interest but can convert into shares of MicroStrategy stock under certain conditions.

Other companies have followed MicroStrategy's lead, with corporate treasuries now holding approximately $56 billion worth of Bitcoin, according to BitcoinTreasuries.net.

Ramaswamy, an ally of President-elect Donald Trump, founded Strive in 2022.

Despite running against Trump in the Republican presidential primary, Ramaswamy later endorsed him.

Following Trump’s election, analysts expect a favorable regulatory environment for crypto ETFs, particularly those holding altcoins like Solana (CRYPTO:SOL), XRP (CRYPTO:XRP), and Litecoin (CRYPTO:LTC).

At the time of reporting, the Bitcoin price was $96,093.97.