Bitcoin Bond ETF: A New Investment Tool
Corporate Bitcoin Holding Trend
Broad Prospects for Cryptocurrency ETF Market
Bitcoin Bond ETF: A New Investment Tool
According to the application documents, Strive’s Bitcoin Bond ETF will be actively managed by a professional team and will gain exposure to Bitcoin bonds through direct investments or the use of financial derivatives such as swap contracts and options. The fund aims to provide investors with an opportunity to indirectly participate in the growth of the Bitcoin market while reducing the risks associated with directly holding cryptocurrencies.
Since 2020, MicroStrategy has invested approximately $27 billion in Bitcoin, becoming a significant driver in the corporate adoption of cryptocurrencies. The company primarily raises funds through the issuance of convertible bonds and new shares, which can be converted into MicroStrategy stocks (MSTR) under specific conditions. Since adopting this strategy, MicroStrategy’s stock price has surged over 2200%.
Corporate Bitcoin Holding Trend
In addition to MicroStrategy, other companies have also followed similar strategies by incorporating Bitcoin into their financial reserves. As of now, corporate financial reserves hold approximately $56 billion worth of Bitcoin, indicating the increasing importance of Bitcoin as a corporate asset.
Broad Prospects for Cryptocurrency ETF Market
With a regulatory environment becoming more favorable, the cryptocurrency ETF market is experiencing a new wave of growth. By 2024, several asset management companies have submitted applications to launch ETFs covering popular altcoins such as Solana (SOL), XRP (XRP), and Litecoin (LTC).
Industry analysts predict that if approved, Strive’s Bitcoin Bond ETF will provide traditional investors with more diversified channels for Bitcoin investments, offer liquidity to Bitcoin reserve companies issuing convertible bonds, and further promote the adoption of Bitcoin and related financial products. Reference source
