Strive Ventures into Crypto Bonds with New ETF Proposal

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Strive Asset Management Ventures into Crypto Bonds with New ETF Proposal

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 27, 2024

Key Takeaways

Strive seeks approval for a Bitcoin Bond ETF investing in convertible bonds tied to companies focused on Bitcoin;
The actively managed ETF plans to gain exposure through direct investments or derivatives such as swaps and options;
Convertible bonds offer low interest but can convert to shares under specific conditions.

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Strive Asset Management Ventures into Crypto Bonds with New ETF Proposal

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Strive Asset Management has applied to the United States regulators to introduce a new exchange-traded fund (ETF) focused on “Bitcoin Bonds”.

According to a filing on December 26, the ETF would invest in convertible bonds issued by companies like MicroStrategy, which allocate large amounts of funds to Bitcoin BTC $89,766.07 .

Founded in 2022 by Vivek Ramaswamy, who is known for his support of Donald Trump, Strive emphasizes leveraging the power of capitalism to create financial opportunities.

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The proposed fund would actively manage its investments, gaining exposure to "Bitcoin Bonds" either directly or through derivatives such as swaps and options.

While Strive has not disclosed its management fees, actively managed ETFs generally charge higher fees compared to passive funds.

Convertible bonds, like those issued by MicroStrategy, typically offer little or no interest but can convert into company shares under specific conditions.

Strive’s Bitcoin Bond ETF aims to tap into this growing trend, offering investors exposure to companies heavily invested in Bitcoin.

As Strive awaits regulatory approval for its Bitcoin Bond ETF, other firms are also making progress in the crypto investment sector. Franklin Templeton and Hashdex recently secured SEC approval for their Bitcoin and Ethereum ETH $3,053.04 ETFs. What led to the SEC's decision to approve these ETFs? Read the full story.