Strive for Bitcoin: New ETF Aims to Tap into Corporate Crypto Holdings
Vivek Ramaswamy, the founder of asset manager Strive, is making a bold move into the world of cryptocurrency with a new exchange-traded fund (ETF) that invests in convertible bonds issued by companies like MicroStrategy, which have made significant investments in Bitcoin. According to a filing on December 26, the Strive Bitcoin Bond ETF will offer exposure to “Bitcoin Bonds,” a type of convertible security that allows companies to raise funds for Bitcoin purchases.
How it Works
The ETF will be actively managed, which means it will require a team of experts to make investment decisions, rather than simply tracking a specific index. This approach will likely come with higher management fees for investors, but it may also provide more flexibility and potential for growth. The fund will gain exposure to Bitcoin bonds either directly or through financial derivatives like swaps and options, allowing investors to tap into the growing trend of corporate Bitcoin holdings.
The Rise of Corporate Bitcoin Holdings
MicroStrategy, led by co-founder Michael Saylor, has been at the forefront of this trend, spending around $27 billion on Bitcoin since 2020 as part of its treasury strategy. This move has paid off, with the company’s stock, MSTR, gaining over 2,200% and outperforming most other public companies. Other companies have followed suit, with corporate treasuries now holding around $56 billion worth of BTC, according to BitcoinTreasuries.NET.
A Trump Connection
Vivek Ramaswamy, the founder of Strive, has an interesting connection to President-elect Donald Trump. Ramaswamy, who has a net worth of around $1 billion, founded Strive in 2022 with the goal of helping investors “harness the power of capitalism.” He initially campaigned against Trump in the Republican presidential primary but later endorsed him. This connection may be relevant, given Trump’s proposed appointments of pro-crypto industry leaders to key regulatory agencies, which could pave the way for more crypto-related ETFs to be approved in the US.
A New Era for Crypto ETFs?
Industry analysts believe that Trump’s presidential win could be a green light for the approval of several proposed crypto ETFs, including those holding altcoins like Solana, XRP, and Litecoin. In fact, since Trump’s election win, there has been a flurry of regulatory filings for ETFs holding these and other cryptocurrencies. With the appointment of pro-crypto leaders to key regulatory agencies, it’s possible that we’ll see a significant increase in the number of crypto-related ETFs available to investors in the coming months.
