Strive, an asset management firm co-founded by Donald Trump’s DOGE appointee Vivek Ramaswamy, files with the SEC to launch a Bitcoin Bond ETF.
With the U.S. spot crypto ETF jinx broken this year following the approval of spot Bitcoin and Ethereum products, the floodgates appear to have been opened on a myriad of funds designed to fulfill the unique needs of investors craving crypto exposure.
These have included filings for options ETFs, index funds, and now a bond fund application from Strive, an asset manager co-founded by former Republican presidential candidate and key Donald Trump appointee Vivek Ramaswamy.
The Strive Bitcoin Bond ETF
The Vivek Ramaswamy co-founded asset manager Strive has filed with the SEC to launch a Bitcoin bond ETF. In a Thursday, December 26 prospectus, the firm explained that the fund seeks to grant investors exposure to convertible securities of companies that use the proceeds to purchase Bitcoin.
Convertible notes are loan agreements that allow a company to raise funds by promising interest to the lender and the option to convert the loan to equity at a set date and price.
As highlighted by Strive, the primary holding of the fund, if approved, is likely to be MicroStrategy‘s convertible notes amid the firm’s aggressive Bitcoin treasury strategy with plans to raise $42 billion over the next three years to purchase the asset.
Meanwhile, Strive is not the only asset manager seeking to offer investors easy exposure to a basket of firms with Bitcoin treasury strategies.
Bitwise Bitcoin Standard Corporations ETF
On Thursday, Bitwise, a $5 billion asset manager, also submitted a filing to launch a Bitwise Bitcoin Standard Corporations ETF to offer investors exposure to firms with significant Bitcoin treasury holdings.
Specifically, the fund will invest in firms holding at least 1,000 BTC having a market capitalization of at least $100 million, average daily liquidity of at least $1 million, and a public free float of less than 10%.
Bitwise notes that the diversified fund’s weighting will depend on the Bitcoin value held by the firms, with the maximum weight for a single security capped at 25%.
Companies that could make the cut for the Bitwise fund include popular names like MicroStrategy, Marathon Digital, Riot Platforms, Hut8, and even Tesla. The fund could also include emerging players like Metaplanet and Semler Scientific.
Commenting on the recent Bitcoin-focused ETF filings, Bloomberg Senior ETF analyst Eric Balchunas asserted that the Bitwise filing aligned more with what members of the crypto community on X have been clamoring for while stating that it remained to be seen if these clamors will translate to real demand.
ETF Store President Nate Geraci shared Balchunas sentiments while stating that the product could be “a nice indie hit” if successful.
The recent filings come as the corporate Bitcoin treasury strategy catches on amid MicroStrategy’s success. The latest firm to adopt the strategy, KULR Technology, has seen its share price jump nearly 300% since revealing plans on December 4 to invest up to 90% of its surplus cash in cryptocurrency.
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