New Fund Application: Strive Asset Management Seeks SEC Approval for Bitcoin-Linked Convertible Bonds ETF
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Vivek Ramaswamy’s Strive Asset Management Files for Bitcoin Bond ETF with SEC
Strive Asset Management, led by billionaire entrepreneur Vivek Ramaswamy, has submitted a request to the United States Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) focused on Bitcoin-linked convertible bonds. The proposed Strive Bitcoin Bond ETF aims to provide exposure to bonds issued by companies that utilize the proceeds to purchase Bitcoin as part of their treasury strategies.
The innovative ETF will target securities from prominent corporations, such as MicroStrategy, which has invested approximately $27 billion in Bitcoin since 2020. These purchases were financed through equity offerings and convertible bonds, typically carrying low or no interest but can be converted into shares under specified conditions.
The Strive Bitcoin Bond ETF plans to achieve its exposure to BTC-linked bonds either directly or via derivatives such as swaps and options. To maintain liquidity and collateral for these instruments, the fund will invest in high-quality, short-term assets like U.S. Treasuries and money market instruments. Although details regarding the management fee have not been disclosed, actively managed funds often come with higher fees compared to passive alternatives.
The strategic context behind this endeavor is centered around addressing long-term economic risks, including the global fiat debt crisis, inflation, and geopolitical tensions. The company believes that there is no better long-term investment option than thoughtful exposure to Bitcoin, encouraging individual and institutional investors to allocate funds directly to Bitcoin, BTC bonds, and companies focused on the cryptocurrency.
Ramaswamy, who launched Strive Asset Management with a focus on capitalism-driven strategies, has maintained a high-profile presence in both business and politics. Having briefly run against Donald Trump in the 2023 Republican presidential primary, he later endorsed the President-elect. Subsequently, Trump appointed Ramaswamy to co-lead the Department of Government Efficiency (D.O.G.E.), an initiative aimed at reducing government waste, alongside X owner Elon Musk.
This development marks another significant milestone for Bitcoin and the broader cryptocurrency space as it seeks to gain mainstream acceptance and legitimacy within traditional financial structures.
Source: cryptopotato.com
