Vivek RAMASWAMY, founder of Strive Asset Management has submitted a request to US regulators for the launch of a new Exchange-Traded Fund (ETF). The ETF is designed to give investors exposure to “Bitcoin Bonds,” according to a Dec. 26 filing.
The Strive Bitcoin Bond ETF will target convertible bonds issued by companies like MicroStrategy that have invested significant portions of their capital in Bitcoin (BTC). These companies use the proceeds to purchase Bitcoin.
The Bitcoin Bond ETF
Funds will have an active management, and their exposure to Bitcoin Bonds can be achieved directly through financial instruments like swaps or options. Active funds have typically higher management fees than passively-managed funds, even though the fee amount hasn’t been revealed.
MicroStrategy began buying Bitcoins in 2020, under the leadership of co-founder Michael Saylor as part a corporate Treasury strategy. In the past, MicroStrategy has invested around $27 Billion in Bitcoin. The move has helped its stock MSTR rise by more than 2,200%.
This company has funded these Bitcoin purchases by issuing convertible bonds and new shares. The bonds are usually low-interest or even zero interest, but they can be turned into stock under certain circumstances. Other corporations have followed suit, and corporate treasuries now collectively hold approximately $56 billion worth of Bitcoin, according to BitcoinTreasuries.net.
Enjoyable atmosphere
Ramaswamy founded Strive, in 2022, to aid investors who want to leverage the capitalist benefits. Ramaswamy, who initially ran in Republican presidential primary elections, later endorsed Trump.
Strive’s approach aims to provide innovative financial products for investors, aligning with Ramaswamy’s broader goals of disrupting traditional industries. Strive filed for its Bitcoin Bonds ETF as experts predicted that Trump’s administration would support crypto with a more favorable regulation environment.
Following Trump’s November election victory, the US crypto industry expects key regulatory changes, including the appointment of figures such as former PayPal COO David Sacks as the “AI and crypto czar.”
The filing fits into a larger trend. Multiple asset managers are seeking approval of various ETFs that focus on crypto, such as those which will give exposure to altcoins including Solana, XRP and Litecoin. The filings show the increasing interest in crypto-based investments in light of recent regulatory changes.
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