Strive, an asset management firm founded by Vivek Ramaswamy has filed a request with U.S. regulators to launch an exchange-traded fund (ETF) focused on convertible bonds issued by MicroStrategy and other companies involved in Bitcoin investments.
According to a filing on December 26, the ETF, known as the Strive Bitcoin Bond ETF, aims to offer exposure to “Bitcoin Bonds,” which are convertible securities issued by firms like MicroStrategy that use the proceeds to buy Bitcoin.
The actively managed ETF will invest directly in these bonds or use financial derivatives like swaps and options to gain exposure. While Strive hasn’t yet disclosed the management fees, actively managed funds typically charge higher fees than passive index funds.
MicroStrategy, led by co-founder Michael Saylor, has spent about $27 billion buying Bitcoin since 2020, using a mix of new stock and convertible bonds. These bonds are attractive because they offer low or no interest but can convert to MicroStrategy stock under certain conditions.
Other companies have followed suit, and corporate treasuries now hold around $56 billion in Bitcoin. Ramaswamy, a strong ally of President-elect Donald Trump, founded Strive in 2022 to help investors leverage capitalism.
As Trump moves toward a pro-crypto regulatory stance, many analysts expect the approval of several proposed crypto ETFs. With crypto leadership shifting in the U.S., the approval of Strive’s Bitcoin Bond ETF could be the next big step for crypto investments.
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