Efforts to file “Bitcoin Bond” ETF linked to MicroStrategy holdings

Strive Asset Management plans to launch a new ETF that will provide exposure to Bitcoin through convertible notes, focusing primarily on MicroStrategy’s holdings.

The Strive Bitcoin Bond ETF invests at least 80% of its assets in “Bitcoin bonds” and related derivatives, including swaps and options.

The actively managed fund makes allocation decisions based on costs and return potential and will have direct positions in both Bitcoin-linked convertibles and derivatives.

The fund maintains cash positions in short-term U.S. Treasury securities and may invest in other Bitcoin-focused investment vehicles.

As a non-diversified fund, it can concentrate its holdings in a single issuer, such as MicroStrategy, and allocate more than 25% of its assets to companies in the software and technology sector.

Operating under a “manager of managers” structure, the ETF will be advised by Empowered Funds, LLC, which may appoint and replace sub-advisers without shareholder approval.

The Fund’s shares are traded on the New York Stock Exchange and held through the Depository Trust Company.

The ETF aims to qualify as a regulated investment company and plans to distribute net investment income quarterly and capital gains at least annually.

The Fund may engage in securities lending up to 33 1/3% of its total assets and may invest up to 15% in illiquid securities.

The fund’s performance is closely tied to the results of MicroStrategy’s Bitcoin investments.

MicroStrategy has been adopting a Bitcoin treasury strategy since 2020, and many other companies have recently followed suit.

The ETF aims to leverage MicroStrategy’s investments by leveraging its derivatives positions as a new financial vehicle, highlighting the growing appetite among investors to use MicroStrategy as a proxy for Bitcoin exposure.

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