Ramaswamy’s Strive targets Bitcoin-linked corporate bonds in new ETF plan

Vivek Ramaswamy’s Strive Asset Management intends to focus on Bitcoin-tied corporate bonds through the creation of a new exchange-traded fund (ETF).

According to the Financial Times, which references a regulatory document, Vivek Ramaswamy’s firm, Strive Asset Management, intends to debut a new exchange-traded fund. This fund will primarily focus on investing in corporate bonds that have been issued to finance Bitcoin (BTC) acquisitions.

The Strive Bitcoin Bond ETF, as it’s named, has been officially registered with the U.S. Securities and Exchange Commission. According to the regulatory document, this ETF will actively purchase bonds and employ financial instruments such as swaps and options. The goal of these investments is to focus on companies that use the bond earnings to procure Bitcoin, as suggested in the report.

The document emphasizes MicroStrategy as a major focal point, highlighting that this firm, established by Michael Saylor, has allocated more than $27 billion into Bitcoin since the year 2020. As a result, the value of MSTR shares has significantly increased by approximately 600% in the year 2024.

According to the report, Strive aims for 80% of its ETF’s holdings to originate from Bitcoin bonds issued by companies like MicroStrategy and their counterparts. Matthew Cole, the CEO of Strive, will oversee the ETF, with portfolio managers Jeffrey Sherman and Randol Curtis also contributing to the management.

Ramaswamy transitioned from being a biotech entrepreneur to an asset manager and is known for his critique of “activist capitalism.” He co-founded Strive Asset Management with the aim of putting shareholder goals ahead of political agendas. Moreover, he’s anticipated to head a new efficiency department within the government under Donald Trump’s administration, alongside Elon Musk, following Trump’s win in the latest U.S. presidential election.

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2025-01-06 13:56