- The active Bitcoin strategy of the company has pushed its stock, MSTR to have more than 2,200% in value, surpassing most large-cap public firms.
- Analysts from the industry forecast that the presidency of Trump could boost the acceptance of various pending crypto ETFs.
- Apart from Strive, Bitwise has also filed to introduce the Bitcoin Standard Corporations ETF.
On December 26, Strive owned by Vivek Ramaswamy filed with United States regulators to introduce an exchange-traded fund (ETF) targeted at funding Bitcoin-associated convertible bonds.
As per the filing, the offered Strive Bitcoin Bond ETF will aim for securities provided by firms such as MicroStrategy, which have utilized proceeds from convertible bonds to buy Bitcoin as part of their corporate treasury strategies.
The cordially headed ETF looks forward to offering exposure to “Bitcoin Bonds,” mentioned in the filing as convertible securities offered by MicroStrategy and other companies like this. These bonds permit holders to transfer them into firm shares under particular conditions, at the same time proceeds are utilized to purchase Bitcoin.
Exposure to these bonds
Strive is also planning to incorporate exposure to these bonds by using financial derivatives, like swaps and others. Meanwhile, the management fee of the fund has not been unveiled, actively headed ETFs mostly take more fees as compared to passive index funds.
MicroStrategy, an American development country, has put its $27 billion money in Bitcoin since 2020 under the supervision of its co-founder, Michael Saylor. The firm has funded these purchases by a blend of equity offerings and convertible bonds.
The active Bitcoin strategy of the company has pushed its stock, MSTR to have more than 2,200% in value, surpassing most large-cap public firms, such as tech giants, excluding Nvidia. The corporate treasuries of the company hold about $56 billion worth of Bitcoin overall, as per BitcoinTreasuries.net., the premier source of comprehensive data on Bitcoin holdings.
Vivek Ramaswamy introduced Strive two years ago with the aim of empowering investors through capitalism-operated strategies. Even so, he succinctly campaigned against Trump the last year, he then later publicized Trump and connected with Elon Musk to head the Department of Government Efficiency (DOGE), a private step taken to cut government waste.
Acceptance of various crypto ETFs
The analysts from the industry forecast that the presidency of Trump could boost the acceptance of various pending crypto ETFs, which comprise funds targeting some altcoins such as Solana, XRP, and Litecoin.
The pro-crypto stance of Trump is clear in his appointments of David Sacks, ex-chief operating officer of PayPal, as his “AI and crypto czar” and Paul Atkins was nominated by him for the post of new chairman of SEC.
Apart from Strive, Bitwise has also filed to introduce the Bitcoin Standard Corporations ETF. which will aim the publicly traded firms holding some Bitcoin reserves. As per the latest regulatory filing, permitted firms must have at least 1,000 Bitcoins in their corporate treasuries.
Apart from this, a market capitalization of not less than $100 million, daily liquidity of $1 million or over, and a free float of under 10%.
