Strive, an asset management firm started by Vivek Ramaswamy, wants to launch an ETF that invests in convertible bonds issued by MicroStrategy and other companies that buy Bitcoin.
The firm has filed an application with the SEC on December 26.
Bitcoin’s Demand Continues to Grow Among Retail Investors
According to the filing, the ETF aims to give investors exposure to “Bitcoin Bonds,” which are convertible securities issued by companies like MicroStrategy that use the money to buy Bitcoin.
Strive will actively manage the ETF, investing directly in these bonds or using financial products like swaps and options. The asset management firm was founded by republican politician Vivek Ramaswamy back in 2022.
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 with the largest meme coin DOGE, has continuously triggered market volatility.
“Vivek’s ETF company has filed for a Bitcoin Bond ETF that will track (using swaps) convertible bonds issued for the purpose of buying Bitcoin- so essentially it’s a Microstrategy convertible bond ETF until other firms do the same,” ETF analyst Eric Balchunas wrote on X (formerly Twitter).
Meanwhile, industry analysts expect more crypto ETFs to be approved under Trump’s administration. Earlier this month, the SEC approved the first-ever duel Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton.
Strive’s proposed Bitcoin Bonds ETF could offer another unique financial product for retail investors longing for Bitcoin’s exposure.
“Elon’s silence about Bitcoin since the election, combined with recent news about Vivek’s Bitcoin Bond ETF applicatio,n has brought my confidence in a strategic US Bitcoin reserve to a near guarantee. Day one is not off the table. Things are in motion that cannot be undone,” wrote popular influencer The Bitcoin Therapist.
MicroStrategy’s Stock Shows Pararrell Demand to Bitcoin
The concept of a Bitcoin Bond ETF is lucrative because it provides indirect exposure to MicroStrategy’s Bitcoin acquisition benefits.
Since 2020, MicroStrategy, led by Michael Saylor, has spent over $27 billion buying Bitcoin. This has boosted its stock price by over 2,200%.
However, the firm has aggressively ramped up its Bitcoin purchases throughout 2024. In December alone, MicroStrategy bought over $4 billion worth of BTC. All of these purchases took place when the token was hovering above $95,000.
Also, Bitcoin’s bullish performance in 2024 has been reflected in MSTR’s stock performance. The stock gained nearly 400% year-to-date, driving MicroStrategy among the top 100 public companies.
At the same time, this success led to the stock’s inclusion in the Nasdaq-100 index. There’s also significant potential for inclusion in the S&P 500 next year.
MicroStrategy has funded these Bitcoin purchases by issuing new shares and convertible bonds. These bonds have low or no interest but can be converted into MSTR shares.
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