Vivek Ramaswamy’s Strive files for Bitcoin Bond ETF with the SEC
Strive, an asset management firm founded by Vivek Ramaswamy, wants to launch an ETF that invests in convertible bonds issued by MicroStrategy and other companies. buy bitcoin.
The company submitted an application to the SEC on December 26.
Retail investor demand for Bitcoin continues to grow
according to ArchiveThe ETF is designed to give investors exposure to “bitcoin bonds,” which are convertible securities issued by companies like MicroStrategy, which use the money to buy bitcoin.
Strive will actively manage the ETF, investing directly in these bonds or using financial products such as swaps and options. The asset management company was founded in 2022 by Republican politician Vivek Ramaswamy.
In November, he joined Tesla founder Elon Musk in leading Department of Government Efficiency (DOGE)a private initiative aimed at reducing wasteful government spending. However, its similarity to the biggest meme coin, DOGE, has continue to cause market volatility.
ETF analyst Eric Balchunas said: “Vivek’s ETF company has filed to launch a Bitcoin Bond ETF, which will track (using swaps) convertible bonds issued to purchase Bitcoin, so essentially it is a Microstrategy convertible Bond ETFs until other companies do the same.” Wrote on X (formerly Twitter).
Meanwhile, industry analysts expect the Trump administration to approve more cryptocurrency ETFs. Earlier this month, the U.S. Securities and Exchange Commission (SEC) approved The First Bitcoin vs. Ethereum ETF Showdown From Hashdex and Franklin Templeton.
Strive to put forward Bitcoin Bond ETF Another unique financial product can be provided to retail investors eager to invest in Bitcoin.
“Elon’s silence on Bitcoin since the election, combined with the recent news about Vivek’s Bitcoin Bond ETF filing, makes my confidence in the U.S. Bitcoin Strategic Reserve all but guaranteed. Day 1 is not out of the question. Things It has happened and cannot be undone.” Wrote Popular influencer Bitcoin Therapist.
MicroStrategy stock shows parallel demand to Bitcoin
The concept of a Bitcoin Bond ETF is lucrative because it provides indirect exposure to MicroStrategy’s Bitcoin acquisition proceeds.
Michael Saylor-led MicroStrategy has spent more than $27 billion since 2020 buy bitcoin. That sent its shares up more than 2,200%.
However, the company has Aggressively increase Bitcoin purchases Throughout 2024. December only, MicroStrategy buys over $4 billion worth of BTC. All of these purchases occurred while the coin price was hovering above $95,000.
Additionally, Bitcoin’s bullish performance in 2024 is also reflected in MSTR’s stock performance. The stock is up nearly 400% year to date, propelling MicroStrategy into the stock market Top 100 listed companies.
At the same time, this success has led to the stock Incorporated into Nasdaq 100 Index. There is also great potential to be included in the S&P 500 next year.
MicroStrategy funded these Bitcoin purchases through the issuance of new shares and convertible bonds. These bonds pay little or no interest but can be converted into MSTR shares.
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