Vivek Ramaswamy’s Strive Asset Management is entering the ETF arena by officially submitting the Strive Bitcoin Bond ETF to the Securities and Exchange Commission (SEC). In a 475A filing made on December 26th, Strive seeks to capitalize on the evolving investment environment that favors Bitcoin, digital currencies, and the blockchain technology.
As per the prospectus available on the SEC website, the Strive team aspires to provide investors with access to MicroStrategy’s convertible securities. These securities have gained popularity due to a supportive political climate and the anticipated introduction of favorable cryptocurrency regulations.
Strive’s main investment approach involves allocating a minimum of 80% of its capital to Bitcoin, while the rest will be directed towards short-term money market instruments, such as U.S. government securities.
Strive’s inaugural initiative for Bitcoin solutions will broaden access to Bitcoin bonds, which are bonds issued by firms to acquire Bitcoin. We believe these bonds offer appealing risk-return potential related to Bitcoin, even though they are largely inaccessible to most… pic.twitter.com/F7oiKDuDb7
— Strive (@StriveFunds) December 26, 2024
Strive Commits to a Bitcoin-Centric Strategy
Strive takes a daring investment move at a moment when Bitcoin and digital currencies are gaining traction in the financial sphere. Michael Saylor’s MicroStrategy, a pioneer in Bitcoin integration, has set an example for many emerging investment firms aspiring to thrive.
The prospectus from Strive underscores its investment methodology inspired by MicroStrategy’s achievements. A MicroStrategy-centered Bitcoin investment concept has turned into a widely embraced model for numerous entities, further encouraging Bitcoin to challenge the $100k threshold. Additionally, there are hopes that a Donald Trump administration may prove beneficial for the cryptocurrency sector.
Through its CEO, Matt Cole, Strive Funds advocates for a Bitcoin-focused strategy. In a recent announcement, Cole indicated that the firm is assessing investments that align with the current Bitcoin and blockchain-friendly government.
In anticipation of engaging with Bitcoin ETF bonds, Strive has released a Bitcoin Primer on its official site, detailing essential concepts, including its history.
Strive applies for a “Bitcoin Bond” ETF…
It will seek exposure to convertible securities issued by MicroStrategy. pic.twitter.com/ybJjbVFWUN
— Nate Geraci (@NateGeraci) December 26, 2024
Strive’s Bitcoin Bonds ETF Approach
According to its prospectus, Strive’s Fund is actively managed, with the team investing its resources via derivative instruments, options, and swaps to obtain exposure to MicroStrategy’s convertible securities.
In line with its strategy, the fund will allocate at least 80% of its resources to Bitcoin. Strive, established in 2022 by Ramaswamy, benchmarks itself against MicroStrategy, recognized as the largest and original Bitcoin treasury company globally. Essentially, Strive is providing its investors with a chance to invest and potentially profit from Bitcoin without necessitating direct ownership or dealing with its inherent volatility.
Apart from direct investments in Bitcoin, the organization intends to specialize in other Bitcoin-related offerings for portfolio diversification.
Bitcoin and Blockchain Are Increasingly Embraced by Enterprises
Using MicroStrategy’s investment strategy as a guide, Strive collaborates with other companies to explore novel investment methods that correspond to the current financial advancements.
Strive’s focus on Bitcoin ETFs will benefit from Ramaswamy’s background and his close association with Trump’s administration. Together with Elon Musk, Ramaswamy was appointed to lead a new entity named D.O.G.E., which is set to enhance governmental efficiency.
Featured image sourced from The Motley Fool, chart by TradingView
