Asset management firm Strive, founded by entrepreneur and former U.S. presidential candidate Vivek Ramaswamy, has filed for a Bitcoin-focused ETF aimed at investments in convertible bonds. The filing signals a strategic shift toward integrating cryptocurrency-backed financial instruments into traditional investment products.
A Focus on Bitcoin-Backed Bonds
The proposed Strive Bitcoin Bond ETF will be actively managed, granting exposure to Bitcoin bonds directly or through instruments such as swaps and options. These bonds include securities from companies with significant Bitcoin holdings, such as MicroStrategy, which is widely recognized for its aggressive Bitcoin acquisition strategy.
MicroStrategy has invested billions into Bitcoin since 2020, amassing 444,262 BTC at an average purchase price of $62,257. With Bitcoin currently trading at around $96,300, this holding is now valued at $42.7 billion. The company’s stock (MSTR) has surged by over 2,200% in four years, outperforming most public companies except Nvidia.
Strive’s Vision for Crypto Integration
Founded in 2022, Strive positions itself as a vehicle to “harness the power of capitalism.” Vivek Ramaswamy, the firm’s founder, has been a vocal supporter of cryptocurrency initiatives, particularly in the wake of Donald Trump’s victory in the 2024 U.S. presidential election. With a pro-crypto administration in place, expectations for regulatory approval of digital asset-focused ETFs have grown.
Trump’s administration has already made key appointments to support crypto adoption, including David Sacks as an advisor on AI and cryptocurrency. This political shift is seen as a potential catalyst for broader acceptance of Bitcoin-related ETFs.
Implications for Investors
The launch of a Bitcoin bond ETF could attract investors seeking indirect exposure to cryptocurrency with potentially reduced risk compared to direct investment. With MicroStrategy’s proven returns serving as a benchmark, Strive’s ETF could become a significant player in the crypto-asset investment space.
Market Outlook
While the political and regulatory environment appears favorable for crypto-based financial products, the volatility of Bitcoin and the broader crypto market remains a key risk factor. Investors should consider whether exposure to Bitcoin bonds aligns with their risk tolerance and portfolio objectives.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Always consult a financial advisor before making investment decisions.
