Strive Files for ‘Bitcoin Bond’ ETF to Offer Exposure to MicroStrategy’s Corporate Bitcoin Holdings

Strive Asset Management, an investment firm founded by Vivek Ramaswamy, has formally applied to U.S. regulators for approval to launch a new exchange-traded fund (ETF) focused on convertible bonds linked to Bitcoin investments. The proposed ETF aims to give investors exposure to "Bitcoin Bonds," primarily those issued by MicroStrategy, the largest corporate Bitcoin holder, and potentially other companies following a similar strategy.

What is the Strive Bitcoin Bond ETF?

The Strive Bitcoin Bond ETF seeks to invest in convertible securities issued by companies like MicroStrategy, which have used these instruments to raise capital for purchasing Bitcoin. Convertible bonds offer low or no interest payments but provide the option to convert into company stock under certain conditions. The fund plans to focus on bonds from companies that dedicate a significant portion of their funds to buying Bitcoin, aligning with MicroStrategy's strategy of using Bitcoin as a corporate treasury asset.

According to the filing, the ETF will be actively managed, meaning it will either directly invest in Bitcoin Bonds or gain exposure through financial derivatives, such as swaps and options. Strive has not disclosed the management fees, but actively managed ETFs typically have higher fees than passive index funds.

MicroStrategy's Bitcoin Strategy

MicroStrategy, led by co-founder Michael Saylor, has become a significant player in the Bitcoin space, accumulating over $27 billion worth of Bitcoin since 2020. The company’s stock, MSTR, has seen a meteoric rise, increasing more than 2,200%, outperforming most other major publicly traded companies, with Nvidia being one of the few exceptions.

To fund these purchases, MicroStrategy has issued a combination of new stock and convertible bonds. These bonds, though paying low or no interest, allow bondholders to convert their holdings into MicroStrategy shares under certain conditions, providing investors with upside potential tied to the company’s stock performance.

Other companies have followed MicroStrategy’s lead, and today, corporate treasuries collectively hold an estimated $56 billion in Bitcoin, according to BitcoinTreasuries.net. The success of these strategies has spurred interest in similar products, such as Strive’s proposed ETF.

Vivek Ramaswamy and Strive’s Ambitious Plans

Strive Asset Management was founded in 2022 by Vivek Ramaswamy, an entrepreneur known for his biotech startup Roivant Sciences, which contributed significantly to his net worth of approximately $1 billion. Ramaswamy is a vocal ally of President-elect Donald Trump and has been a prominent figure in both business and politics.

Ramaswamy initially campaigned against Trump in the 2024 Republican presidential primaries but later endorsed the President-elect. In November, he joined Elon Musk in leading the Department of Government Efficiency (DOGE), a private initiative aimed at reducing wasteful government spending.

Strive’s new Bitcoin Bond ETF is part of a broader strategy to leverage the growing interest in Bitcoin and crypto assets. Analysts anticipate that Trump's presidential win could accelerate the approval of multiple crypto-related ETFs waiting for regulatory clearance, including those focused on altcoins like Solana (SOL), XRP (XRP), and Litecoin (LTC).

Regulatory Environment and Crypto ETFs

The crypto industry has been closely watching the regulatory environment in the U.S., with several asset managers submitting filings for ETFs that would hold altcoins such as Solana, XRP, and Litecoin. As the U.S. prepares for the 2024 elections, Trump's stance on crypto has garnered attention. He has expressed support for pro-crypto leadership in key regulatory agencies, which analysts believe could open the door for more crypto-focused ETFs.

In December 2024, Trump appointed David Sacks, former PayPal COO, as his "AI and crypto czar" and nominated Paul Atkins, a former SEC commissioner, for the position of SEC chair. These moves have heightened expectations that under a Trump administration, the regulatory environment for crypto could become more favorable, potentially clearing the path for the approval of crypto ETFs like Strive’s Bitcoin Bond ETF.

Conclusion

As the Strive Bitcoin Bond ETF seeks approval, it reflects a growing trend of institutional interest in Bitcoin as part of corporate treasury strategies. MicroStrategy’s success in integrating Bitcoin into its balance sheet has inspired other companies to adopt similar approaches, and Strive’s ETF could provide investors with a new avenue for exposure to this emerging asset class. With the political landscape shifting and regulatory momentum building, the future of crypto ETFs looks poised for further expansion in the years ahead.