Strive Asset Management, the company founded by Republican politician Vivek Ramaswamy, has filed a Bitcoin Bond Exchange-Traded Fund (ETF). This is big news for Bitcoin exposure through convertible securities, primarily issued by companies that are already in the cryptocurrency space, like MicroStrategy.
Bitcoin Bond ETF: A New Angle
The proposed ETF will be managed actively by the managers at Strive Asset Management, LLC. It is set to engage in convertible debt instruments of companies such as MicroStrategy, the largest and among the loudest corporate proponents for Bitcoin. The fund will also include companies such as Riot Platforms (RIOT), Hut 8 Mining Corp (HUT8), Marathon Digital Holdings (MARA), and Stronghold Digital Mining (SMLR), which have invested heavily in Bitcoin.
The Bitcoin Bond ETF, which is part of the EA Series Trust, is going to place at least 80% of its assets in these specific Bitcoin bonds. This class of securities includes swaps, options and derivatives tied to companies that are heavily invested in Bitcoin. More than 25% of its assets will be in software and technology, showing its focus on innovation and market sensitivity.
Pending approval, shares of the Bitcoin Bond ETF will be listed on the New York Stock Exchange and held by the Depository Trust Company. Strive’s proposal also states it will be a regulated investment company with quarterly distributions to shareholders.
Strive’s Vision and Leadership
Founded in 2022, Strive Asset Management is the company of Republican and former 2024 U.S. Presidential candidate Vivek Ramaswamy and Anson Frericks, founder of Athletic Capital. Strive has always positioned itself against traditional investment approaches and offered solutions to long-term economic problems.
In a post on X, formerly Twitter, Strive wrote:
“Since our inception, Strive has called out the long-term investment risks caused by the global fiat debt crisis, inflation, and geopolitical tensions. We strongly believe there is no better long-term investment to hedge against these risks than thoughtful exposure to Bitcoin.”
There’s also the added bonus of Ramaswamy’s government connections. President-elect Donald Trump recently appointed Ramaswamy and Elon Musk to be co-chairs of the new Department of Government Efficiency as part of his new “Save America” initiative. This cements the connection between the old guard and the new world of finance.
Bridging TradFi and Crypto
The Strive Bitcoin Bond ETF is where TradFi and crypto are coming together. It’s reportedly taking established investment strategies and marrying them with the crypto markets through convertible securities.
It differs in that it focuses on the convertible securities. Most Bitcoin ETFs only trade on the price of Bitcoin, but Strive Bitcoin Bond ETF will invest in securities connected with companies that have invested in Bitcoin. This will reduce volatility and capture the upside of the asset.
Also, Strive’s pursuit of regulatory approval shows its commitment to trust and transparency in this new crypto ETF space. The company is trying to appeal to both institutional and retail investors through traditional financial standards and quarterly distributions.
Conclusion
The Bitcoin Bond ETF is a big step towards mainstreaming the leading cryptocurrency. With a team led by high-profile conservatives like Vivek Ramaswamy, the company is well-positioned to shape the relationship of crypto with traditional investment.
Until regulatory approval, success could be the key to unlocking more innovation in the crypto space as TradFi and crypto learn to coexist in this new economic world.
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FAQs
1. What is Strive’s Bitcoin Bond ETF?
That was an ETF that invested in convertible securities of companies focused on Bitcoin, but Strive Asset Management hopes this new fund will allow investors to get indirect exposure to Bitcoin.
2. Who founded Strive Asset Management?
Strive Asset Management was co-founded in 2022 by Vivek Ramaswamy, a Republican and former 2024 U.S. Presidential candidate, and Anson Frericks.
3. What’s different about an ETF from Strive?
Unlike all the other direct Bitcoin ETFs out there, this one will invest in convertible securities swaps and options, among them from companies that are heavily invested in Bitcoin.
4. What is the Government Efficiency Department?
DOGE is a new department in the Trump administration headed by Vivek Ramaswamy and Elon Musk, focusing on streamlining government processes.
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