Vivek Ramaswamy’s Strive Asset Management is making a significant move by filing the Strive Bitcoin Bond ETF with the SEC, joining the growing trend of ETFs focused on Bitcoin and digital assets. The filing submitted on December 26th aims to capitalize on the increasing interest in Bitcoin and blockchain technology in the investment landscape.
The prospectus shared on the SEC website reveals that Strive intends to provide investors access to MicroStrategy’s convertible funds, which have gained popularity due to favorable political conditions and anticipated crypto-friendly regulations. The primary investment strategy of Strive is to allocate at least 80% of its funds to Bitcoin, with the remaining portion invested in short-term money market instruments like US government securities.
In a tweet, Strive mentioned that their Bitcoin bond ETF will democratize access to Bitcoin bonds, which are issued by corporations to purchase Bitcoin, offering attractive risk-return exposure to the digital asset. This move is aimed at providing access to Bitcoin bonds that are not readily available to most investors.
Strive’s decision to focus on Bitcoin aligns with the increasing popularity of digital assets in the financial market. By leveraging MicroStrategy’s success in Bitcoin adoption, Strive aims to position itself as a key player in the evolving investment landscape. The prospectus highlights a strategy that mirrors MicroStrategy’s Bitcoin investment thesis, which has been influential in pushing Bitcoin towards the $100k mark. Additionally, there are expectations that a Donald Trump presidency will be favorable for the crypto industry.
CEO Matt Cole of Strive Funds has expressed support for a Bitcoin-first strategy, emphasizing the importance of aligning investments with the current administration’s stance on Bitcoin and blockchain. In preparation for the launch of the Bitcoin bond ETF, Strive has published a Bitcoin Primer on its website, providing investors with essential information on Bitcoin, including its history.
The investment strategy of Strive’s Fund involves actively managing ETF assets through derivative instruments, options, and swaps to gain exposure to MicroStrategy’s convertible securities. The fund plans to invest a significant portion of its assets in Bitcoin, using MicroStrategy as a benchmark due to its status as the world’s leading Bitcoin treasury company. This approach allows investors to benefit from Bitcoin’s potential without directly owning the digital asset or being exposed to its volatility.
In addition to direct investments in Bitcoin, Strive aims to explore other Bitcoin-related products to diversify its portfolio and adapt to the evolving financial landscape. By following MicroStrategy’s lead, Strive is among the firms testing new investment strategies that align with current market developments and the growing acceptance of Bitcoin and blockchain technology.
Ramaswamy’s background and close ties to Trump’s administration, along with his involvement in promoting government efficiency through the D.O.G.E. agency, position Strive as a key player in the evolving landscape of Bitcoin investments. The company’s decision to focus on Bitcoin ETFs reflects a broader trend of increased acceptance and integration of digital assets into traditional investment strategies.
Overall, Strive’s entry into the ETF market with a Bitcoin bond ETF signals a strategic move to capitalize on the growing interest in Bitcoin and digital assets, providing investors with access to innovative investment opportunities in the evolving financial landscape.
