The fund’s objective is to provide exposure to convertible bonds issued by MicroStrategy, as well as other securities.
Strive, an asset manager established by Vivek Ramaswamy, has submitted a request to United States regulators for authorization to list an exchange-traded fund (ETF) that invests in convertible bonds issued by MicroStrategy and other corporate Bitcoin purchasers.
“Bitcoin Bonds” are “convertible securities issued by MicroStrategy” or other firms that intend to “invest all or a large part of the profits to acquire Bitcoin,” as stated in the filing, and the ETF aims to provide exposure to these bonds.
The Strive Bitcoin Bond ETF will be actively managed and will acquire exposure to “Bitcoin Bonds” through financial derivatives, including swaps and options, or directly.
Actively managed funds generally charge a higher management fee than passive index funds, although Strive has not yet disclosed the exact amount.
MicroStrategy has invested approximately $27 billion in Bitcoin since 2020 as part of a corporate treasury strategy led by co-founder Michael Saylor.
Since then, its stock, MSTR, has increased by over 2,200%, surpassing the performance of nearly every significant public company with the exception of Nvidia.
MicroStrategy has funded those acquisitions by issuing a combination of convertible bonds and new stock. However, its bonds may convert into MSTR shares under specific circumstances, despite paying low or no interest.
Other organizations have emulated this approach. BitcoinTreasuries.net reports that corporate treasuries currently possess an estimated $56 billion in BTC.
In the year 2022, Ramaswamy, an outspoken supporter of President-elect Donald Trump, formed Strive. According to Strive’s website, the asset manager’s objective is to assist investors in “unleashing the potential of capitalism.”
In 2023, Ramaswamy, who derived the majority of his approximately $1 billion net worth from the establishment of biotechnology startup Roivant Sciences, participated in the Republican presidential primary against Trump.
He subsequently expressed his support for the President-elect. In November, Ramaswamy joined Tesla founder Elon Musk in the leadership of the Department of Government Efficiency (DOGE), a private initiative that aims to reduce wasteful government expenditure.
In the United States, over half a dozen proposed crypto ETFs are awaiting regulatory approval to list, and industry analysts regard Trump’s presidential victory as a positive development.
Trump has advocated for the appointment of pro-crypto industry executives to key regulatory agencies since his victory in the US presidential election on November 5.
In December, the President-elect appointed former PayPal chief operating officer David Sacks as his “AI and crypto coordinator” and former commissioner Paul Atkins as his nominee for the position of Securities and Exchange Commission chair.
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