Strive Asset Management has filed an application to launch an ETF focusing on convertible bonds from MicroStrategy and other companies that have adopted a bitcoin strategy.
The firm was founded by Vivek Ramaswamy, who will work alongside Elon Musk in DOGE under the administration of U.S. President-elect Donald Trump.
The Strive Bitcoin Bond ETF will be actively managed.
Access to “bitcoin bonds” will be provided directly or through swaps and options. The fee structure has not been disclosed.
MicroStrategy’s bitcoin reserves have reached 444,262 BTC, valued at approximately $83.5 billion at the time of writing.
Since August 2020, the corporation has spent around $27.7 billion on acquiring the leading cryptocurrency, at an average purchase price of roughly $62,257.
Despite the significant rise in its stock price and inclusion in the Nasdaq 100 index, MicroStrategy faces criticism for its strategy of creating shareholder value by accumulating bitcoin on its balance sheet, including through debt financing.
In October, the company unveiled its “Plan 21/21,” aimed at raising $42 billion over the next three years to purchase digital gold.
On December 27, plans emerged for Bitwise to launch a Bitcoin Standard Company ETF.
Bitwise files for Bitcoin Standard Corporations ETF…
Would own stocks of companies that have adopted the “bitcoin standard”, which they define as holding at least 1,000 btc in corporate treasury.
The btc treasury operations virus is spreading. pic.twitter.com/me0XXX9a6g
— Nate Geraci (@NateGeraci) December 26, 2024
The structure will primarily invest in shares of corporations that have added bitcoin as a reserve asset.
The following conditions are stipulated:
- a balance of at least 1,000 BTC;
- a market capitalization of at least $100 million;
- an average daily liquidity of securities of at least $1 million;
- a minimum free float threshold of at least 10%.
Currently, 22 companies meet the first criterion.
Companies holding > 1,000 btc…
via @HODL15Capital
h/t @Roubini18 pic.twitter.com/E91ky56iEI
— Nate Geraci (@NateGeraci) December 27, 2024
Only 0.55% of Microsoft shareholders approved the creation of a bitcoin reserve.
On December 8, a similar proposal was put forward to Amazon equity holders.
Currently, only 0.01% of public companies worldwide hold the leading cryptocurrency, according to OKG Research.