Bitcoin investing isn’t what it used to be. You don’t just buy coins and hope they go up anymore. Strive Asset Manager, a firm founded by Vivek Ramaswamy, is pushing the boundaries with a new kind of fund. They’ve filed for a Bitcoin Bond ETF, which could let investors profit from companies that are big on Bitcoin—without directly owning any.
Strive files for “Bitcoin Bond” ETF…
Would seek exposure to convertible securities issued by MicroStrategy. pic.twitter.com/ybJjbVFWUN
— Nate Geraci (@NateGeraci) December 26, 2024
If that sounds a bit confusing, don’t worry. The idea is actually pretty simple. Companies like MicroStrategy have been using bonds to invest in Bitcoin for years. Strive wants to bring that strategy to investors like you.
What Exactly Are Bitcoin Bonds?
Bitcoin bonds aren’t actually Bitcoin. They’re more like loans companies take out. MicroStrategy, for example, issues bonds to raise cash, which they then use to buy Bitcoin. These bonds are interesting because they can turn into shares of the company later. It’s a risky move, but for MicroStrategy, it’s been a jackpot. Their stock has soared over 2,200% since 2020.
Strive’s ETF wants to jump into this space. Instead of just buying Bitcoin, the fund would invest in these bonds. It’s an active approach, meaning managers make decisions on which bonds to pick. They might also use tools like swaps and options to maximize returns.
Source : SEC Edgar
The fees haven’t been announced yet, but actively managed funds typically cost more than regular index funds. Whether or not that’s worth it will depend on how the Bitcoin bond ETF performs.
Politics and Crypto: How Does Ramaswamy Fit In?
Let’s talk about Vivek Ramaswamy for a second. He’s not just some Wall Street guy. He’s also a major political player. In 2023, he ran against Donald Trump in the Republican primaries. After losing, he turned around and endorsed Trump. Now, the two seem to be working toward a common goal—making the U.S. a leader in innovation, including crypto.
Under Trump, the crypto world has seen some big shifts. Former SEC commissioner Paul Atkins is set to lead the SEC, and David Sacks, PayPal’s ex-COO, has been named “AI and Crypto Czar.” These moves suggest a friendlier attitude toward crypto, which could make it easier for funds like Strive’s ETF to get approved.
What’s Next for Bitcoin Investors?
If Strive’s ETF gets the green light for the Bitcoin bind ETF, it could open the door for a new wave of Bitcoin investors. Instead of dealing with the ups and downs of owning Bitcoin directly, people can invest in bonds tied to the cryptocurrency. It’s less risky in some ways, but still gives exposure to Bitcoin’s growth.
This isn’t just about one fund, though. It’s part of a bigger trend of blending traditional finance with the crypto world. As more companies adopt Bitcoin into their strategies, tools like this ETF could make it easier for everyday investors to get involved. This shows how Bitcoin is making its place in the financial world. Just recently, Bitwise filed for ETF that tracks Corporate giants with heavy Bitcoin in their books.
