Vivek Ramaswamy's Strive Asset joins the crypto rush with plans for a Bitcoin Bond ETF

This marks a high-profile foray into the frenzy of bitcoin-backed exchange traded funds, only a year after the first such ETF was launched.

Entrepreneur and American politician Vivek Ramaswamy's asset management firm Strive Asset has filed an application with the US Securities and Exchange Commission (SEC) to launch a Bitcoin Bond ETF, aiming to invest in convertible bonds from companies such as MicroStrategy to buy Bitcoin.

This marks a high-profile foray into the frenzy of bitcoin-backed exchange traded funds, only a year after the first such ETF was launched

The total US ETF assets had hit the $10 trillion mark for the first time in September last year, underscoring a craze for ETFs in the US market.

The approval of Bitcoin exchange-traded funds nearly a year ago, including one by BlackRock, was seen as a watershed moment, paving the way for institutions entering the crypto market. Aside of BlackRock, the US SEC had approved 11 spot bitcoin ETFs including Vanguard, Franklin Templeton, Valkyre, Fidelity and Invesco on January 10, last year. Industry experts at that time believed that these ETFs will bring more price stability and reduce liquidity risks, over time.

Read More: Do spot bitcoin ETFs matter for Indian crypto investors?

Papers file by Strive Asset before the SEC have proposed a fund to invest in derivatives like swaps and options in order to take exposure into convertible securities by MicroStrategy or other such companies that are planning to purchase Bitcoins.

Strive is proposing to launch a fund that invests in derivatives such as swaps and options to get exposure to convertible securities issued by MicroStrategy or other companies with similar investment strategies, according to paperwork filed last week.