Strive Bitcoin Bond ETF: A New Pathway to Bitcoin Exposure

Strive Asset Management is making a groundbreaking move by introducing a new ETF that will provide investors with exposure to Bitcoin through unconventional means. The Strive Bitcoin Bond ETF aims to offer a path to Bitcoin investment by focusing primarily on “Bitcoin Bonds,” specifically utilizing MicroStrategy’s holdings as the primary vehicle.

The actively managed fund will dedicate a significant portion—at least 80%—of its assets to Bitcoin-related convertible securities and derivatives, such as swaps and options. The strategy will involve a calculated mix of direct securities and derivative instruments, with decisions influenced by factors like cost efficiency and potential returns. Additionally, the fund will reserve cash in short-term US Treasury securities and may diversify into other Bitcoin-centric investment channels.

Operating as a non-diversified entity, the ETF will concentrate its investments in select issuers, notably MicroStrategy, and place over 25% of its assets into companies within the software and technology sectors. Empowered Funds, LLC, will act as the fund’s adviser, employing a dynamic “manager of managers” approach that allows it to modify sub-advisers without the need for shareholder consent.

Traded on the New York Stock Exchange, the ETF's holdings will be secured through the Depository Trust Company. Aiming to meet the standards of a regulated investment company, the ETF plans to distribute net investment income quarterly, with capital gains shared annually. It reserves the right to participate in securities lending up to a third of its assets and may invest up to 15% in non-liquid securities.

The fund will seek to capture the growing demand among investors for alternative routes to Bitcoin exposure using novel financial instruments, by leveraging MicroStrategy’s innovative Bitcoin treasury strategy.