Vivek Ramaswamy’s Strive Files for “Bitcoin Bonds” ETF Tracking MicroStrategy Convertible Securities Market – MicroStrategy (NASDAQ:MSTR)

Strive for asset managementa company consisting of Vivek Ramaswamyannounced plans on Thursday for an exchange-traded fund that would seek to invest in convertible securities issued by companies investing in: Bitcoin Bitcoin/USD.

what happened: Proposed ETF named Strive Bitcoin Bond ETFwhich aims to give investors exposure to the growing “bitcoin bond” market, led by investors such as MicroStrategy. Magnetic transmission technology U.S. Securities and Exchange Commission filings reveal funding for Bitcoin acquisitions.

“Under normal circumstances, at least 80% of the fund’s notional exposure (through securities and financial instruments) will be invested in Bitcoin bonds,” the filing reads.

Strive said the fund will treat convertible bonds as equity securities, although the instruments have some attributes of debt securities.

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why it’s important: The filing comes as a growing number of companies issue convertible bonds to support their Bitcoin buying strategies. Michael Seiler-led MicroStrategy has been the market leader in issuing these bonds at a 0% interest rate.

A convertible note is a hybrid instrument that can be converted into equity in a company at a later date. The conversion feature of these notes ultimately helps debt holders benefit from an equity capital increase upon conversion.

The strategy has attracted considerable criticism, with analysts pointing to the risks of debt buyers not converting into equity before maturity.

Meanwhile, popular cryptocurrency analyst James van Straten noted that Strive’s filing represents “more vested interest” in Bitcoin performing well under the Trump administration.

Strive founder Ramaswamy appointed by President-elect Donald Trump lead new Ministry of Government Efficiency with tech tycoons Musk.

Ramaswamy’s foray into cryptocurrency is not new. While campaigning for the Republican presidential nomination, Ramaswamy advocated for narrowing the SEC’s reach and clarifying cryptocurrency regulations.

price action: As of this writing, Bitcoin is trading at $96,007.97, down 2.65% in the past 24 hours, according to Benzinga Pro.

Photo: Gage Skidmore on flickr

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