Strive, an asset manager founded by Vivek Ramaswamy, has asked United States regulators for permission to list an exchange-traded fund (ETF) investing in convertible bonds issued by MicroStrategy and other corporate Bitcoin (BTC) buyers, according to a Dec. 26 filing.
The ETF seeks to offer exposure to “Bitcoin Bonds,” described as “convertible securities issued by MicroStrategy” or by other companies that plan to “invest all or a significant portion of the proceeds to purchase Bitcoin,” according to the filing.
The Strive Bitcoin Bond ETF will be actively managed and will gain exposure to “Bitcoin Bonds” either directly or through financial derivatives, such as swaps and options, Strive said.
Strive has not yet specified the management fee investors will be charged, but actively managed funds typically charge more than passive index funds.
Source: Bitcointreasuries.net
Bitcoin bonds
Beginning in 2020, MicroStrategy has spent approximately $27 billion buying Bitcoin as part of a corporate treasury strategy spearheaded by co-founder Michael Saylor.
Its stock, MSTR, has since gained more than 2,200%, outperforming practically every sizeable public company except Nvidia.
MicroStrategy has financed those buys by issuing a mixture of new stock and convertible bonds. Its bonds pay low or no interest but may convert to MSTR shares under certain conditions.
Other companies have followed suit. Corporate treasuries now hold approximately $56 billion worth of BTC, according to BitcoinTreasuries.net.
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Source: Nate Geraci
Trump connection
Ramaswamy, an outspoken ally of President-elect Donald Trump, founded Strive in 2022. The asset manager aims to help investors “harness the power of capitalism,” according to Strive’s website.
In 2023, Ramaswamy — who earned most of his approximately $1 billion net worth from founding biotechnology startup Roivant Sciences — campaigned against Trump in the Republican presidential primary.
He later endorsed the President-elect. In November, Ramaswamy joined Tesla founder Elon Musk in leading the Department of Government Efficiency (DOGE), a private initiative intended to cut wasteful government spending.
Industry analysts see Trump’s presidential win as a green light for more than half a dozen proposed crypto ETFs waiting on regulatory approval to list in the US.
In 2024, asset managers submitted a flurry of regulatory filings to list ETFs holding altcoins, including Solana (SOL), XRP (XRP) and Litecoin (LTC), among others.
Since winning the US presidential election on Nov. 5, Trump has proposed appointing pro-crypto industry leadership for key regulatory agencies.
In December, the President-elect announced former PayPal chief operating officer David Sacks as his “AI and crypto czar” and former commissioner Paul Atkins as his pick for Securities and Exchange Commission chair.
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