Subtitle: Ramaswamy’s Firm Seeks to Offer Exposure to Bitcoin-Purchasing Corporate Bonds
Strive, the asset management firm founded by Vivek Ramaswamy, has officially filed with U.S. regulators to launch an innovative exchange-traded fund (ETF) that would give investors exposure to “Bitcoin Bonds.” The filing, submitted on December 26, seeks approval for an actively managed ETF that will primarily focus on convertible bonds issued by companies like MicroStrategy, which have made substantial investments in Bitcoin as part of their corporate treasury strategies.
This new fund, dubbed the Strive Bitcoin Bond ETF, aims to provide a unique way for investors to gain indirect exposure to Bitcoin through corporate debt securities. According to the filing, the ETF will target convertible bonds—securities that can be converted into the issuing company’s stock—and similar financial instruments tied to companies that allocate a significant portion of their funds toward Bitcoin purchases. These bonds could either be held directly or accessed via financial derivatives such as swaps and options.
While Strive has yet to disclose the management fees for the fund, it’s expected that, like other actively managed funds, it will charge higher fees than passive index funds. However, for investors looking to gain exposure to Bitcoin through the bonds of companies already holding large Bitcoin positions, this ETF could provide a novel and potentially lucrative investment avenue.
Bitcoin Bonds: A Growing Trend Among Corporations
Strive’s proposed ETF capitalizes on a growing trend in the corporate world where companies are increasingly turning to Bitcoin as part of their treasury management strategy. MicroStrategy, the business intelligence firm led by Michael Saylor, is one of the most prominent examples. Since 2020, MicroStrategy has spent around $27 billion to purchase Bitcoin, making it one of the largest corporate Bitcoin holders in the world.
MicroStrategy’s stock, symbolized as MSTR, has surged over 2,200% in value since the company began its Bitcoin acquisitions—outperforming nearly every major public company, with the exception of Nvidia. To fund these Bitcoin purchases, MicroStrategy has issued a mix of new equity and convertible bonds, which are debt instruments that typically pay low or no interest but can be converted into company shares under certain conditions.
Other corporations have followed MicroStrategy’s lead, contributing to a collective corporate Bitcoin treasury worth around $56 billion, according to BitcoinTreasuries.NET. Strive’s ETF could tap into this pool of corporate debt and offer investors a unique way to gain exposure to Bitcoin through the companies that hold it.
The Trump Connection: Ramaswamy’s Role in the Crypto Ecosystem
The timing of Strive’s Bitcoin Bond ETF filing also connects to the broader political landscape, particularly in light of the upcoming presidential administration of Donald Trump. Vivek Ramaswamy, who founded Strive in 2022, has been a vocal ally of Trump. Ramaswamy, an entrepreneur who made his fortune in biotechnology through Roivant Sciences, initially campaigned against Trump in the Republican presidential primary but later endorsed the former president.
Following Trump’s win in the 2024 election, Ramaswamy joined forces with Elon Musk to lead the Department of Government Efficiency, a private initiative focused on cutting wasteful government spending. This political alignment could have implications for Strive’s efforts to launch its Bitcoin-focused ETF, particularly as Trump’s pro-crypto stance is expected to influence key regulatory agencies in the U.S.
In the months following Trump’s election win, industry analysts have been watching closely to see how his administration could shape the regulatory landscape for cryptocurrencies. His proposals to appoint crypto-friendly figures to key positions, such as former PayPal COO David Sacks as “AI and crypto czar” and former SEC commissioner Paul Atkins as chair of the Securities and Exchange Commission (SEC), are seen as signals that the regulatory environment for crypto could become more favorable.
A Surge in Crypto ETF Proposals: Is the Future Bright for Bitcoin Funds?
Ramaswamy’s Bitcoin Bond ETF is part of a broader trend in the investment world, where asset managers are increasingly looking to launch crypto-related ETFs. In 2024 alone, several filings for ETFs that would hold altcoins such as Solana, XRP, and Litecoin have been submitted to U.S. regulators. With crypto-friendly appointments expected within Trump’s administration, many analysts are optimistic that these proposals could soon receive the green light.
Should Strive’s Bitcoin Bond ETF receive approval, it would mark a significant milestone in the integration of traditional financial markets with cryptocurrency. Bitcoin has already established itself as a digital asset class with increasing institutional adoption, and the launch of such ETFs could further cement its place in mainstream investment portfolios.
What Does This Mean for Investors?
For investors, Strive’s proposed Bitcoin Bond ETF offers a unique opportunity to gain exposure to Bitcoin without directly owning the digital asset itself. By focusing on convertible bonds issued by Bitcoin-adopting companies, the ETF taps into the growing trend of corporate Bitcoin treasuries, allowing investors to benefit from the price appreciation of Bitcoin held by these firms.
However, as with any actively managed fund, it’s important for potential investors to consider management fees, which are typically higher than those associated with passive investment strategies. Additionally, the fund’s performance will depend not just on the price of Bitcoin but also on the financial health and stock performance of the companies whose bonds it holds.
Looking Ahead: The Future of Bitcoin and Crypto ETFs
With Bitcoin and other cryptocurrencies continuing to gain traction as legitimate assets, the demand for investment vehicles that provide exposure to these assets is likely to grow. Strive’s Bitcoin Bond ETF is one of the first to focus on the intersection of Bitcoin and corporate finance, and it could signal the start of a new wave of crypto-focused financial products.
As the regulatory landscape continues to evolve under a potentially crypto-friendly administration, investors can expect more innovative ETFs and other investment options that bridge the gap between traditional financial markets and the burgeoning cryptocurrency space. Whether Strive’s Bitcoin Bond ETF will be the first of many or a unique offering in its own right remains to be seen, but one thing is clear: crypto’s influence on the investment world is only getting stronger.
