Strive, an asset management company started by Vivek Ramaswamy, is looking to launch an ETF that would invest in convertible bonds issued by MicroStrategy and other companies that buy Bitcoin.
The company filed its application with the SEC on December 26.
Bitcoin demand continues to grow among retail investors.
According to the filing, the ETF aims to provide investors with exposure to “Bitcoin bonds,” which are convertible bonds issued by companies like MicroStrategy that use the money to buy bitcoin.
Strive will either invest directly in these bonds or actively manage ETFs using financial instruments such as swaps and options. The asset management company was founded in 2022 by Republican politician Vivek Ramaswamy.
In November, he joined Tesla founder Elon Musk in leading the Department of Government Efficiency (DOGE), a private initiative to reduce wasteful government spending. However, its similarity to the biggest meme coin, DOGE, has continued to spark market volatility.
“Vivek’s ETF company has filed for a Bitcoin bond ETF that tracks (using swaps) convertible bonds issued for the purpose of purchasing Bitcoin. So essentially, until another company does the same, Microstrategy Convertibles ETFs,” wrote ETF analyst Eric Balchunas. X (formerly Twitter).
Meanwhile, industry analysts expect more cryptocurrency ETFs to be approved under the Trump administration. Earlier this month, the SEC approved Hashdex and Franklin Templeton’s first-ever dual Bitcoin and Ethereum ETF.
The Bitcoin Bond ETF proposed by Strive could provide another unique financial product for retail investors eager for Bitcoin exposure.
“Elon’s silence on Bitcoin since the election, combined with the recent news of Vivek’s application for a Bitcoin bond ETF, has almost guaranteed my confidence in strategic US Bitcoin reserves. The first day is not off the table. “Something is going on that cannot be reversed.” Written by popular influencer The Bitcoin Therapist.
MicroStrategy’s Stock Shows Pararrell Demand for Bitcoin
The concept of a Bitcoin Bond ETF is highly profitable because it provides indirect exposure to the benefits of MicroStrategy’s Bitcoin acquisition.
MicroStrategy, led by Michael Saylor, has spent more than $27 billion purchasing Bitcoin since 2020. This sent the stock price up more than 2,200%.
However, the company has aggressively increased its Bitcoin purchases throughout 2024. In December alone, MicroStrategy purchased $4 billion worth of BTC. All of these purchases occurred when the token was worth more than $95,000.
Additionally, Bitcoin’s strength in 2024 is reflected in MSTR’s stock performance. The stock has risen nearly 400% since the beginning of the year, putting MicroStrategy among the top 100 publicly traded companies.
At the same time, this success led to the stock’s inclusion in the Nasdaq-100 index. There is also a significant possibility that it will be included in the S&P 500 next year.
MicroStrategy financed these Bitcoin purchases by issuing new shares and convertible bonds. These bonds bear low or no interest but can be converted into MSTR stock.
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