Asset management firm Strive, founded by Vivek Ramaswamy, is planning to launch an ETF that invests in convertible bonds issued by MicroStrategy and other companies that buy Bitcoin.
The company filed for registration with the SEC on December 26.
Demand for Bitcoin continues to grow among individual investors
According to filethis ETF aims to provide investors with exposure to “Bitcoin Bonds,” which are convertible securities issued by companies like MicroStrategy that use capital to purchase Bitcoin.
Strive will actively manage this ETF, investing directly in these bonds or using financial products such as swaps and options. This asset management company was founded by Republican politician Vivek Ramaswamy in 2022.
In November, he joined Tesla founder Elon Musk to lead the Department of Government Effectiveness (DOGE), a private initiative aimed at reducing wasteful government spending. However, the name’s similarity to the largest meme cryptocurrency DOGE has caused constant market fluctuations.
“Vivek’s ETF firm has applied for a Bitcoin Bond ETF, which would track (using swaps) convertible bonds issued for the purpose of purchasing Bitcoin – essentially a convertible bond ETF MicroStrategy’s changes until other companies follow suit,” said ETF analyst Eric Balchunas write on X (formerly Twitter).
Meanwhile, industry experts expect more crypto ETFs to be approved under the Trump administration. Earlier this month, the SEC approved Hashdex and Franklin Templeton’s first combined Bitcoin and Ethereum ETF.
Strive’s proposed Bitcoin Bond ETF could offer another unique financial product for individual investors desiring exposure to Bitcoin.
“Elon’s silence on Bitcoin since the election, combined with recent news of Vivek’s Bitcoin Bond ETF application, has increased my confidence in the near-term US strategic Bitcoin reserve like sure. The first day is not off the table. What is happening cannot be reversed,” said famous influencer The Bitcoin Therapist write.
MicroStrategy stock shows demand in tandem with Bitcoin
The concept of a Bitcoin Bond ETF is attractive because it provides indirect exposure to the gains from MicroStrategy’s purchases of Bitcoin.
Since 2020, under the leadership of Michael Saylor, MicroStrategy has spent over $27 billion to buy Bitcoin. This pushed the company’s stock price up more than 2,200%.
However, the company has consistently increased its Bitcoin purchases throughout 2024. In December alone, MicroStrategy purchased over $4 billion worth of BTC. All of these purchases took place when the Token price held above $95,000.
Additionally, Bitcoin’s strong price increase in 2024 is also reflected in MSTR stock performance. Shares are up nearly 400% since the beginning of the year, putting MicroStrategy among the top 100 public companies.
At the same time, this success led to the stock being included in the Nasdaq-100 index. At the same time, there is a strong possibility of being included in the S&P 500 next year.
MicroStrategy funded this Bitcoin purchase by issuing new shares and convertible bonds. These bonds have low or no interest rates but can be converted into MSTR shares.
