Vivek Ramaswamy’s Strive files for ETF focused on ‘Bitcoin Bonds’

• The Strive Bitcoin Bond ETF aims to invest at least 80% of its assets in these bonds, which companies like MicroStrategy use to finance Bitcoin purchases.
• Vivek Ramaswamy’s political ties, including his advocacy for streamlined crypto regulation and close ties with the Trump administration, could influence the ETF’s development.

Strive Asset Management, co-founded by D.O.G.E leader Vivek Ramaswamy, has filed its application for a new exchange-traded fund (ETF) for investment in convertible securities, which will be linked to Bitcoin. The Strive Bitcoin Bond ETF seeks to ride high on the surging market in “Bitcoin bonds,” the SEC filing filed publicly on Thursday shows.

About Strive Bitcoin Bond ETF

The SEC filing revealed that the ETF would invest at least 80% of its assets in Bitcoin bonds under normal circumstances. These instruments are usually used by companies like MicroStrategy Inc. (NASDAQ: MSTR) to finance Bitcoin purchases. Strive’s approach includes classifying convertible debt as equity securities despite these instruments exhibiting certain characteristics of debt.

According to the filing, “Under normal circumstances, at least 80% of the notional exposure of the Fund (through securities and financial instruments) will be to Bitcoin Bonds.” For further context, the pioneering company in the use of convertible bonds to acquire Bitcoin has been MicroStrategy, per the CNF report. 

Such companies issued bonds with 0% interest rates, leveraging the appeal of Bitcoin in the same way to attract investors. Convertible notes give potential upside to equity for the holders as they allow holders to exchange debt for company equity at a later date.

However, the strategy is criticized for its risks. According to analysts, there is also a risk of debt holders not converting to equity before maturity, impacting returns.

The Trump Factor In-Play

Meanwhile, it’s important to note that Strive co-founder Vivek Ramaswamy has a history of advocating for streamlined crypto regulation. During his campaign for the Republican presidential nomination, he emphasized reducing the influence of the Securities and Exchange Commission (SEC) in crypto matters.

A crypto analyst spotlighted another major highlight, James Van Straten, on Strive’s ETF filing. He exclaimed, “Vivek Ramaswamy owns Strive with outside investment from the now Vice President J.D. Vance. More vested interest for BTC to do well from the Trump Administration,” he said over social media site X.

Ramaswamy has received attention in the crypto space after an alliance with President-elect Donald Trump. Recently, Trump appointed him to lead the Department of Government Efficiency (D.O.G.E), which could influence policymaking on crypto-related matters.

Bitwise’s Bitcoin Standard Company ETF

Moreover, Bitwise Asset Management is also advancing in the Bitcoin ETF market, reported CNF. The company recently filed for a fund that would track firms adopting Bitcoin as part of their corporate reserves. This Bitcoin Standard Company ETF will allocate at least 80% of its assets to securities from firms with substantial Bitcoin holdings, as outlined in its prospectus.

This ETF is targeting companies like MicroStrategy, Marathon Digital, Coinbase, Tesla, Semler Scientific, and Metaplanet. According to eligibility for the fund, the company should have at least 1,000 Bitcoin in the reserve.