Strive Asset Management, an investment firm co-founded by biotech entrepreneur Vivek Ramaswamy, has filed for regulatory approval for a new exchange-traded fund (ETF) focused on Bitcoin-backed corporate bonds, according to the Financial Times.
The fund is named the Strive Bitcoin Bond ETF, and it is designed to actively invest in corporate bonds and derivatives such as swaps and options, focusing on companies that allocate bond proceeds to Bitcoin.
Stocks of MicroStrategy, the software firm led by Bitcoin advocate Michael Saylor, are expected to be a critical part of the fund. Strive anticipates that 80% of its exposure will come from “Bitcoin bonds” issued by MicroStrategy and similar firms. Since 2020, MicroStrategy has invested over $27 billion in Bitcoin, and its stock price (MSTR) has risen concurrently. In 2024, it soared by nearly 600%, positioning the company as a significant player in the Bitcoin bond market.
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The fund will be managed by Strive’s CEO, Matthew Cole, along with portfolio managers Jeffrey Sherman and Randol Curtis.
Strive Asset Management was founded by Ramaswamy to prioritize shareholder interests, distancing itself from what he calls “woke capitalism.”
Beyond his investment endeavours, Ramaswamy was recently appointed by President-elect Donald Trump to co-lead the newly established Department of Government Efficiency (DOGE) alongside Tesla CEO Elon Musk. The new department is tasked with reducing wasteful federal spending and tackling inefficiencies so as to curb the U.S. government’s rising expenditure. Trump expressed confidence in Ramaswamy and Musk and noted the department would operate with an “entrepreneurial approach” to streamline government processes.
Meanwhile, competition in the Bitcoin ETF space is heating up. A number of asset managers, such as Calamos Investments, Grayscale Investments, and First Trust Portfolios, have filed for Bitcoin ETFs specially designed to reduce digital asset volatility. These funds propose using strategies like “buffered” mechanisms to protect against losses while limiting potential gains, catering to risk-averse investors.
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