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 obtain 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 holding cryptocurrencies directly.
Since 2020, MicroStrategy has invested approximately $27 billion in Bitcoin, becoming a key driver in promoting the adoption of cryptocurrencies in the corporate world. The company primarily raises funds through the issuance of convertible bonds and new stocks, which can be converted into MicroStrategy stocks (MSTR) under certain conditions. Since adopting this strategy, MicroStrategy’s stock price has soared over 2200%.
Corporate Bitcoin Holding Trend
In addition to MicroStrategy, other companies have also followed similar strategies by including Bitcoin in 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 friendly, the cryptocurrency ETF market is experiencing a new wave of growth. By 2024, several asset management companies have submitted applications to launch ETFs covering mainstream altcoins such as Solana (SOL), XRP (XRP), and Litecoin (LTC).
Industry analysts expect that if Strive’s Bitcoin Bond ETF is approved, it will provide traditional investors with more diversified channels for Bitcoin investments, offer liquidity to Bitcoin reserve companies issuing convertible bonds, and further promote the popularity of Bitcoin and related financial products. Reference source