Strive Asset Management to Launch Bitcoin Bond ETF Targeting MicroStrategy

Strive Asset Management is launching an exchange-traded fund that will invest in bonds of companies investing in Bitcoin. The company is targeting MicroStrategy, whose active and consistent investment in Bitcoin can make bonds valuable and sustainable.

Strive Asset Management, co-founded and majority-owned by Vivek Ramaswamy, has filed with the Securities and Exchange Commission to launch a Bitcoin bond ETF. The fund will invest through derivatives like swaps and options to gain access to convertible securities issued by companies that Strive “expects will invest all or a significant portion of the proceeds to purchase Bitcoin.”

According to the application, “Under normal circumstances, at least 80% of the notional exposure of the fund will be to Bitcoin bonds.”

The effort is being driven by companies like MicroStrategy, whose systematic Bitcoin purchases are broadly indicative of the entire crypto industry.

“While the fund will not directly invest in digital assets, it will be subject to the risks associated with Bitcoin by virtue of its investments in options contracts that reference MicroStrategy or other Bitcoin-related equity, debt and convertible securities,” the application states.

Matthew Cole, chief executive and chief investment officer of Strive, will manage the fund alongside portfolio managers Jeffrey Sherman and Randol Curtis, who is also the chief investment officer of Strive’s wealth management business.

Conclusions

Donald Trump's victory and his crypto initiatives, in particular the appointment of Vivek Ramaswamy to the new Department of Government Efficiency, continue the crypto course. This is the next round of development of crypto ETFs and actual SEC changes with possible shifts in regulations to CFTC that may strengthen this development.