Strive files for "Bitcoin Bond" ETF linked to MicroStrategy holdings

Key Takeaways

The Strive ETF offers Bitcoin exposure through “Bitcoin Bonds,” specifically MicroStrategy's convertible securities and derivatives.
The ETF seeks to participate in the institution of Bitcoin growth.

Strive Asset Management is launch A new ETF that provides exposure to Bitcoin through convertible securities, primarily focused on MicroStrategy holdings.

The Strive Bitcoin Bond ETF invests at least 80% of its assets in “Bitcoin Bonds” and related derivative instruments, including swaps and options.

The actively managed fund will hold both direct positions in Bitcoin-linked convertible securities and derivatives, with allocation decisions based on cost and return potential.

The fund will hold cash positions in short-term US Treasury securities and may invest in other Bitcoin-focused investment vehicles.

As a non-diversified fund, it can concentrate holdings in single publishers like MicroStrategy and allocate more than 25% of assets to companies in the software and technology sector.

Operating under a “manager of managers” structure, the ETF will be advised by ETF Powered Funds, LLC, which may appoint and replace sub-advisers without shareholder approval.

The fund's shares trade on the New York Stock Exchange and are held through the Depository Trust Company.

The ETF aims to qualify as a regulated investment company and expects to distribute net investment income quarterly and capital gains at least annually.

The fund may engage in securities lending up to 33 1/3% of total assets and may invest up to 15% in illegal securities.

The fund's performance will be closely linked to MicroStrategy's Bitcoin investment results.

MicroStrategy has been adopting a Bitcoin financial strategy since 2020, with many other companies recently following suit.

The ETF aims to take advantage of MicroStrategy's investments by using its derivatives position as innovative financial instruments, highlighting the growing desire of investors to use MicroStrategy as a proxy for Bitcoin exposure.