Strive, the asset management firm founded by Vivek Ramaswamy , has filed an application with the SEC to launch a Bitcoin Bond ETF. The proposed ETF aims to invest in convertible bonds issued by companies like MicroStrategy , which use the funds raised from these bonds to purchase Bitcoin. The filing, submitted on December 26, outlines Strive's strategy to actively manage the ETF using direct investments in these bonds or financial tools like swaps and options. MicroStrategy, led by Michael Saylor, has been aggressively accumulating Bitcoin throughout 2024. In December alone, the company purchased over $4 billion worth of BTC, increasing its total Bitcoin holdings significantly. This aggressive strategy has had a direct impact on MicroStrategy's stock price, which has surged nearly 400% this year. The company's stock has also been added to the Nasdaq-100 index, with potential inclusion in the S&P 500 next year. MicroStrategy funds these large Bitcoin acquisitions primarily by issuing shares and convertible bonds, which often carry little to no interest and can be converted into company stock. According to ETF analyst Eric Balchunas, the proposed ETF essentially mirrors MicroStrategy's convertible bond strategy until other companies adopt similar practices. The financial product is expected to appeal to investors seeking indirect exposure to Bitcoin without holding the cryptocurrency directly. Strive’s initiative comes at a time when Bitcoin-related investment products are gaining traction , especially after the SEC approved the first-ever dual Bitcoin and Ethereum ETFs earlier this month from Hashdex and Franklin Templeton. The growing demand for Bitcoin exposure among retail investors continues to drive innovative financial products. Vivek Ramaswamy, a well-known Republican figure, co-founded Strive in 2022 and has been active in promoting financial independence from large institutional investors. In addition to his financial ventures, he has been involved in initiatives like the Department of Government Efficiency (DOGE), which aims to reduce unnecessary government spending. MicroStrategy's ongoing Bitcoin acquisition strategy highlights the appeal of a Bitcoin Bond ETF. The company has invested over $27 billion in Bitcoin since 2020, which has caused its stock price to skyrocket by more than 2,200%. This trend reflects a broader market sentiment where investors see Bitcoin as a strategic long-term asset. Strive's ETF would allow retail investors to tap into this growth indirectly while minimizing some of the risks associated with direct cryptocurrency ownership. Meanwhile, industry experts anticipate further crypto ETF approvals if favorable policies emerge under a potential Trump administration. This optimism stems from growing acceptance of Bitcoin among regulators and traditional financial institutions. Some analysts even suggest that a strategic Bitcoin reserve in the US could become a reality sooner than expected. Popular crypto influencer, The Bitcoin Therapist, recently expressed confidence in Vivek Ramaswamy's ETF proposal, stating that ongoing developments indicate significant changes in the US's approach to Bitcoin. According to him, movements are already underway that could lead to broader adoption of Bitcoin-based financial products on a national level. The concept of a Bitcoin Bond ETF is particularly appealing because it provides exposure not just to Bitcoin, but also to the financial strategies of companies like MicroStrategy. Investors can potentially benefit from the growth in Bitcoin prices and the stock performance of these companies without directly purchasing or holding Bitcoin. Strive's ETF application reflects a larger shift in the financial sector towards Bitcoin-based financial instruments. As Bitcoin's adoption grows and traditional finance integrates cryptocurrency more deeply, products like the Bitcoin Bond ETF could become essential tools for investors seeking diversified exposure to the growing digital asset market.
