Strive’s Bitcoin Bond ETF: A Bold New Investment
Bitcoin investing isn’t what it used to be. You don’t just buy coins and hope they keep rising. Strive Asset Manager, founded by Vivek Ramaswamy, is pushing boundaries with a new type of fund. They have filed for a Bitcoin Bond ETF, which would allow investors to profit from companies with large amounts of Bitcoin without owning any companies directly.
If this sounds a little confusing, don’t worry. The idea is actually very simple. Companies like MicroStrategy have been using bonds to invest in Bitcoin for years. Strive wants to bring this strategy to investors like you.
What exactly are Bitcoin bonds?
Bitcoin bonds are not actually Bitcoin. They are more like loans issued by companies. For example, MicroStrategy issues bonds to raise cash and then uses that cash to buy Bitcoin. These bonds are interesting because they can later be turned into stock in the company. It’s a risky move, but for MicroStrategy, it’s a jackpot. Their shares have soared more than 2,200% since 2020.
Strive for ETF I want to jump into this space. The fund will invest in these bonds rather than just buying Bitcoin. This is a proactive approach, meaning managers decide which bonds to choose. They may also use instruments such as swaps and options to maximize returns.
Fees have not been announced, but fees for actively managed funds are typically higher than for regular index funds. Whether this is worth it will depend on how the Bitcoin Bond ETF performs.
Politics and cryptocurrencies: How does Ramaswamy fit in?
Let’s talk about Vivek Ramaswamy. He’s not just a Wall Street guy. He was also an important political figure. In 2023, he runs against Donald Trump in the Republican primary. After that defeat, he turned to Trump. Now, the two appear to be working toward a common goal — making the United States a leader in innovation, including cryptocurrency.
Under Trump, the crypto world has seen some major changes. Former SEC Commissioner Paul Atkins will lead the SEC, and former PayPal COO David Sacks has been named “artificial intelligence and cryptocurrency czar.” The moves signal a friendlier attitude toward cryptocurrencies, which could make it easier for funds like Strive’s ETF to gain approval.
What’s next for Bitcoin investors?
If Strive’s ETF gets approval as a Bitcoin-tethered ETF, it could open the door to a new wave of Bitcoin investors. Instead of directly dealing with the ups and downs of owning Bitcoin, one can invest in crypto-related bonds. In some ways, it’s less risky, but can still be affected by Bitcoin’s growth.
This isn’t just a question of one fund, though. This is part of a larger trend of the convergence of traditional finance and the crypto world. As more companies incorporate Bitcoin into their strategies, vehicles like ETFs can make it easier for everyday investors to get involved. This shows how Bitcoin is taking hold in the financial world. just, Bitwise Apply for ETF The company tracks corporate giants with significant Bitcoin use on their books.
