The filing by Strive Asset Management to launch a “Bitcoin Bond” ETF marks a pivotal moment for Bitcoin (BTC), especially as it strives to reclaim its position above the $100k threshold.
Steered by Vivek Ramaswamy, a notable figure in the incoming Doland Trump administration, this move not only signifies a strategic expansion of Bitcoin’s reach into traditional investment vehicles but also underscores the cryptocurrency’s growing acceptance and potential in the financial landscape.
Bitcoin Bond ETF that Strive seeks to launch
According to the filing with the US SEC, the Strive Bitcoin Bond ETF is set to be an actively managed fund, focusing on convertible securities issued by companies that invest heavily in Bitcoin.
This strategy not only targets firms like MicroStrategy, which has invested over $27 billion in Bitcoin since 2020 but also seeks to introduce retail and institutional investors to a segment of the Bitcoin economy that was previously less accessible.
The ETF will invest at least 80% of its notional exposure in these ‘Bitcoin bonds’, using derivatives like swaps and options to gain further exposure, thus providing a less volatile investment option compared to direct Bitcoin ownership.
Strive’s approach is rooted in a broader vision to mitigate long-term investment risks such as global debt crises, inflation, and geopolitical tensions through Bitcoin exposure.
By leveraging Bitcoin bonds, Strive aims to offer an investment that aligns with its philosophy of countering these macroeconomic challenges, giving investors a chance to diversify their portfolios with an asset class that has shown resilience against traditional market fluctuations.
Notably, the filing comes at a time when Bitcoin’s hashrate has reached new peaks, signalling robust network security and miner confidence, which could further bolster investor trust in Bitcoin-related financial products.
Bitcoin ETF inflows surge to 6-week highs
The Strive Asset Management ETF’s filing comes weeks after the US SEC approved the first crypto ETFs combining Bitcoin and Ethereum.
It also comes at a time when Bitcoin ETFs have started seeing significant inflows after a period of huge outflows.
On January 3, 2025, for example, the US Bitcoin ETFs saw a total inflow of $907.30M with all ETFs positive net flows according to Coinglass data.
The Fidelity Wise Origin Bitcoin Fund ETF led the charge with a net total of 357M inflows followed by BlackRock’s iShares Bitcoin Trust ETF which registered a net total of 252.30M inflows.
This turn of events reflects a renewed market optimism around Bitcoin ETFs spurred by hopes of regulatory advancements with the incoming Donald Trump administration.
Moreover, the US announcement of a Strategic Bitcoin Reserve adds a layer of governmental endorsement to Bitcoin’s integration into financial strategy, potentially buoying investor sentiment.
With Bitcoin’s price temporarily tapping $99,765 on January 6 morning, the market seems primed for the kind of innovation Strive’s ETF represents.
The ETF could further legitimize Bitcoin (BTC) in traditional finance, potentially attracting more capital and interest, and pushing Bitcoin above its psychological $100k barrier.
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