Strive Asset Management Files for “Bitcoin Bond” ETF Targeting MicroStrategy’s Convertible Securities

Vivek Ramaswamy’s Strive Asset Management is joining the ETF bandwagon by formally filing the Strive Bitcoin Bond ETF with the Securities and Exchange Commission (SEC).

Vivek Ramaswamy’s Strive Asset Management has officially filed a 475A application with the Securities and Exchange Commission (SEC) to launch a Bitcoin (BTC) exchange-traded fund (ETF). The filing was made on December 26th.

According to the prospectus shared on the SEC website, the Strive team aims to offer investors access to MicroStrategy’s convertible funds. These funds are now popular thanks to a friendly political climate and the expected passage of friendly crypto regulations.

Strive’s primary investment strategy is to allocate at least 80% of its funds to Bitcoin, with the remaining on short-term money market instruments, like US government securities.

Strive's first of many planned Bitcoin solutions will democratize access to Bitcoin bonds, which are bonds issued by corporations to purchase Bitcoin.

We believe these bonds provide attractive risk-return exposure to Bitcoin, yet they are not available to be purchased by most… pic.twitter.com/F7oiKDuDb7

— Strive (@StriveFunds) December 26, 2024

Strive Takes A Bold Step Towards Bitcoin-First Policy

Strive takes a bold investment step at a time when Bitcoin and digital assets are becoming more popular in the financial market. Michael Saylor’s MicroStrategy, which leads the industry in Bitcoin adoption, has become the template for many up-and-coming investment houses looking to succeed.

Strive’s prospectus highlights its investing strategy that leverages MicroStrategy’s successes. A MicroStrategy-based Bitcoin investment thesis is now a popular template for many, and it helps Bitcoin continue to test the $100k level. In addition, there are also expectations that a Donald Trump presidency will be beneficial for the crypto niche.

Through its CEO, Matt Cole, Strive Funds has supported a Bitcoin strategy. In a recent statement, Cole explained that the company is exploring investments that will fit the current Bitcoin and blockchain-friendly administration.

In preparation for its involvement with Bitcoin ETF bonds, Strive has published a Bitcoin Primer on its official website, explaining the basics, including history.

Strive files for “Bitcoin Bond” ETF…

Would seek exposure to convertible securities issued by MicroStrategy. pic.twitter.com/ybJjbVFWUN

— Nate Geraci (@NateGeraci) December 26, 2024

Strive Investments Bitcoin Bonds ETF Strategy

According to its prospectus, Strive’s Fund is an actively managed ETF whose team will invest its assets through derivative instruments, options, and swaps to gain exposure to the convertible securities of MicroStrategy.

As part of its plan, the fund will invest at least 80% of its funds in Bitcoin. Strive, founded in 2022 by Ramaswamy, uses MicroStrategy as its benchmark being the world’s largest and original Bitcoin treasury company. In short, Strive is offering its investors an opportunity to invest and potentially earn from Bitcoin without owning it or even enduring its highly volatile nature.

In addition to direct investments in Bitcoin, the company aims to specialize in other Bitcoin-related products to diversify its portfolio.

Bitcoin And Blockchain Continue To Gain Acceptance Among Firms

Using MicroStrategy’s investments as a template, Strive joins other firms to test new investment strategies that fit today’s financial developments.

Strive’s interest in Bitcoin ETFs will be helped by Ramaswamy’s background and his closeness to Trump’s administration. Along with Elon Musk, Ramaswamy was appointed to head a new agency called D.O.G.E., which aims to promote government efficiency.

Featured image from The Motley Fool, chart from TradingView