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Vivek Ramaswamy’s Strive Asset Management Files for Bitcoin Bond ETF with SEC
Strive Asset Management, led by entrepreneur Vivek Ramaswamy, has taken a significant step in the cryptocurrency space by submitting an application to launch a Bitcoin bond exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC).
The proposed ETF aims to provide exposure to bonds issued by corporations that use their proceeds to purchase Bitcoin as part of their treasury strategies. This innovative approach would enable everyday investors, as well as institutional investors, to gain access to these bonds, which offer attractive risk-return profiles associated with Bitcoin.
The fund will invest in securities from companies such as MicroStrategy, a prominent player in corporate Bitcoin adoption. It’s worth noting that since 2020, the company has invested around $27 billion in Bitcoin under the leadership of Executive Chairman Michael Saylor. These investments were funded through equity offerings and convertible bonds, which typically carry low or no interest but can be converted into shares under specified conditions.
The proposed ETF will be actively managed and will achieve its exposure to BTC-linked bonds either directly or through 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 US Treasuries and money market instruments. Although fee details have not been disclosed, actively managed funds typically come with higher fees compared to passive alternatives.
The development aligns with Strive’s long-term strategy of addressing long-term economic risks such as the global fiat debt crisis, inflation, and geopolitical tensions. Ramaswamy views Bitcoin as a crucial component in a diversified investment portfolio, encouraging both individual and institutional investors to allocate funds directly to Bitcoin, BTC bonds, or companies focused on the cryptocurrency.
Ramaswamy’s asset management company has been active in promoting capitalism-driven strategies since its inception.
Source: cryptopotato.com
