Company Founded By Vivek Ramaswamy Files For Bitcoin ETF

By Anthony • December 27, 2024 8:37 am • Comments

Strive, an asset company founded by former Republican presidential candidate Vivek Ramaswamy, has filed to launch an ETF focused on Bitcoin-Linking convertible bonds.

In a December 26 filing, Strive wrote it will “target securities issued by companies like MicroStrategy, which have used proceeds from convertible bonds to purchase Bitcoin as part of their corporate treasury strategies.”

These bonds will allow holders to convert them into company shares which proceeds are then used to buy Bitcoin.

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Ramaswamy was Strive’s executive chairman before leaving the company to hit the campaign trail in 2023.

Here’s what Crypto News reported:

Strive, an asset management firm founded by Vivek Ramaswamy, has filed with U.S. regulators to launch an exchange-traded fund (ETF) aimed at investing in Bitcoin-linked convertible bonds.

According to a December 26 filing, the proposed Strive Bitcoin Bond ETF will target securities issued by companies like MicroStrategy, which have used proceeds from convertible bonds to purchase Bitcoin as part of their corporate treasury strategies.

The actively managed ETF seeks to provide exposure to “Bitcoin Bonds,” defined in the filing as convertible securities issued by MicroStrategy or similar firms.

These bonds allow holders to convert them into company shares under specific conditions, while the proceeds are used to buy Bitcoin.

Strive also plans to include exposure to these bonds through financial derivatives, such as swaps and options.

Per Crypto Globe:

Strive Asset Management, co-led by DOGE Co-Chief Vivek Ramaswamy, has taken a significant step toward introducing innovative investment strategies to the U.S. financial market. On Dec. 26, Strive filed with the U.S. Securities and Exchange Commission (SEC) for the launch of the first-ever Bitcoin Bond Exchange-Traded Fund (ETF). This proposed ETF, named the Strive Bitcoin Bond ETF, aims to give investors unique exposure to Bitcoin-backed securities by focusing on convertible bonds issued by Bitcoin-centric companies, primarily MicroStrategy.

The filing was made using Form N-1A, the primary registration document for open-end management investment companies, including mutual funds and ETFs. This form, required by the SEC, provides comprehensive information about the fund’s investment strategy, risks, fees, and operational details. By filing a Form N-1A, Strive not only registers the Bitcoin Bond ETF but also seeks to ensure transparency and compliance with regulatory standards, offering potential investors a clear view of what the fund entails and how it plans to operate.

The SEC filing outlines Strive’s intention to offer an actively managed ETF that allocates at least 80% of its exposure to Bitcoin-related bonds and financial instruments. These include convertible bonds from companies like MicroStrategy, a firm renowned for holding significant amounts of Bitcoin as its primary treasury reserve asset. Convertible bonds are securities that can be converted into a company’s common stock at a specific price. By targeting such instruments, the ETF offers a way for investors to gain exposure to Bitcoin without directly purchasing the cryptocurrency.

 

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