Emily Walker
Strive Asset Management, founded by Vivek Ramaswamy, is moving into the ETF space by submitting an application for the Strive Bitcoin Bond ETF to the Securities and Exchange Commission (SEC). This filing, categorized as a 475A, was made on December 26th and aims to take advantage of the evolving investment climate that increasingly favors Bitcoin and digital assets.
The prospectus available on the SEC’s website reveals that Strive intends to give investors access to the convertible securities offered by MicroStrategy, a company that has become increasingly attractive amid a supportive political environment and anticipated positive regulatory developments for cryptocurrencies.
The investment strategy for Strive will see a minimum of 80% of its assets allocated to Bitcoin, while the remainder will be invested in short-term money market options, such as U.S. government bonds.
Strive’s initial Bitcoin bond offerings will broaden access to bonds tied to Bitcoin, allowing investors to benefit from a new financial instrument. These bonds represent corporate bonds used to acquire Bitcoin and are typically not accessible to general investors… pic.twitter.com/F7oiKDuDb7
— Strive (@StriveFunds) December 26, 2024
Strive’s Bold Move into Bitcoin Investments
As Bitcoin and digital assets gain traction, Strive’s strategy aligns with the current trends in the financial markets. With Michael Saylor’s MicroStrategy leading the way in Bitcoin adoption, the firm has set a model for other investment companies looking to thrive.
Highlights from Strive’s prospectus indicate that they will build upon MicroStrategy’s successful investment model, which is now considered a standard for many, contributing to ongoing discussions around Bitcoin’s potential price movements toward the $100,000 mark. Additionally, there are expectations that favorable policies under a potential Donald Trump administration could benefit the cryptocurrency sector.
Matt Cole, the CEO of Strive Funds, has emphasized the company’s commitment to a Bitcoin-focused investment strategy. In a recent discussion, he pointed out that Strive is actively scouting investments that align with the current political landscape favorable to Bitcoin and blockchain technology.
To prepare for its Bitcoin ETF bond venture, Strive has launched a Bitcoin Primer on its website to educate potential investors about the cryptocurrency’s fundamentals and history.
Strive has filed for a “Bitcoin Bond” ETF…
It aims to gain exposure to convertible securities released by MicroStrategy. pic.twitter.com/ybJjbVFWUN
— Nate Geraci (@NateGeraci) December 26, 2024
Investment Strategy for Strive’s Bitcoin Bonds ETF
The prospectus reveals that Strive’s ETF will be actively managed, utilizing derivative instruments, options, and swaps to invest in MicroStrategy’s convertible securities.
Strive plans to allocate at least 80% of its assets to Bitcoin. Founded by Ramaswamy in 2022, Strive models its investment approach on MicroStrategy, which is recognized as the largest holder of Bitcoin. This offers investors a chance to gain from Bitcoin’s growth without direct ownership or exposure to its inherent volatility.
Alongside its direct Bitcoin investments, Strive aims to explore additional Bitcoin-related offerings to enhance portfolio diversification.
Acceptance of Bitcoin and Blockchain is Growing Among Firms
By following MicroStrategy’s lead, Strive is among other companies looking to adopt innovative investment strategies that align with current financial trends.
Ramaswamy’s connections, particularly with the Trump administration, are anticipated to bolster Strive’s endeavors in Bitcoin ETFs. Additionally, he was appointed alongside Elon Musk to oversee a new agency called D.O.G.E., focusing on improving government efficiency.
Featured image from The Motley Fool, chart from TradingView