Strive Unveils Bitcoin Bond ETF Focused on MicroStrategy

Strive Asset Management submitted a prospectus for a new bitcoin-based ETF that would invest in convertible bonds from companies using proceeds to purchase the cryptocurrency, according to a filing late Thursday with the Securities and Exchange Commission.

The Strive Bitcoin Bond ETF, which has not yet disclosed a ticker symbol or expense ratio, would offer investors a different avenue to gain bitcoin exposure through corporate debt rather than direct cryptocurrency holding, according to the filing.

The proposal comes as MicroStrategy, the largest corporate bitcoin holder, joined the Nasdaq-100 last week following its transformation from a software company to a bitcoin powerhouse.

The fund aims to provide exposure to “Bitcoin Bonds,” described as convertible securities issued by MicroStrategy or other companies planning to use proceeds for bitcoin purchases, according to the filing. These bonds pay low to no interest but may convert to company shares under certain conditions.

Bitcoin-focused Corporate Debt

Since adopting bitcoin as its treasury reserve in 2020, MicroStrategy has spent $27.7 billion acquiring 444,262 bitcoins, becoming a top performer among major companies with its stock increasing nearly fivefold year to date.

Strive Asset Management was founded by Vivek Ramaswamy, who recently joined Tesla founder Elon Musk in leading the Department of Government Efficiency for the incoming President-elect Donald Trump.

The proposed fund would invest at least 80% of its assets in convertible bonds from companies using proceeds to buy bitcoin, either directly or through derivatives like swaps and options, the filing stated.

The actively managed fund can use financial derivatives and other bitcoin-related instruments to gain exposure to these convertible securities, according to the filing. The fund will also invest portfolio cash balances in high-quality, short-term money market instruments like U.S. Treasuries for liquidity and derivatives.

Matthew Cole, Strive’s CEO and chief investment officer, will manage the fund alongside portfolio managers Jeffrey Sherman and Randol Curtis, who is also the chief investment officer of Strive Wealth Management, according to the filing.