Strive Asset Management has filed for regulatory approval to launch a Bitcoin Bond ETF, aimed at providing investors exposure to convertible securities tied to Bitcoin, while private Bitcoin transactions facilitated by CoinJoin have tripled since 2022, driven by large-scale accumulators and institutional demand.
Strive Asset Manager Seeks Approval for Bitcoin Bond ETF Amid Trump’s Pro-Crypto Presidency
Strive Asset Management, founded by biotech entrepreneur and Trump ally Vivek Ramaswamy, has submitted a regulatory filing to launch a new exchange-traded fund (ETF) targeting Bitcoin-related convertible bonds. The proposed Strive Bitcoin Bond ETF would provide investors with exposure to “Bitcoin Bonds,” convertible securities issued by companies like MicroStrategy and others that allocate significant capital to Bitcoin purchases.
The ETF aims to actively manage investments in Bitcoin Bonds, either directly or through derivatives such as swaps and options, according to the Dec. 26 filing. Strive has not yet disclosed the management fees, though actively managed funds typically carry higher costs than passive alternatives.
The initiative builds upon MicroStrategy’s groundbreaking approach to corporate treasury management. Since 2020, the business intelligence firm has invested approximately $27 billion in Bitcoin, leveraging convertible bonds and stock issuances to fund its purchases. This strategy, spearheaded by MicroStrategy co-founder Michael Saylor, has transformed the company into a de facto Bitcoin holding entity, with its stock (MSTR) appreciating over 2,200%, surpassing most publicly traded companies except Nvidia.
MicroStrategy’s success has inspired a wave of corporate adoption. As of late 2024, corporate treasuries collectively hold roughly $56 billion in Bitcoin, according to BitcoinTreasuries.net. This growing trend suggests an increasing institutionalization of Bitcoin within the financial ecosystem, further bolstered by Strive’s ETF proposal.
The timing of Strive’s filing is noteworthy, coinciding with a significant shift in US regulatory and political landscapes. President-elect Donald Trump’s pro-crypto stance has reignited optimism for the cryptocurrency industry. Trump, who secured the presidency in November 2024, has signaled strong support for blockchain innovation and digital assets.
In December, Trump announced key appointments to advance this agenda, including former PayPal COO David Sacks as his “AI and crypto czar” and Paul Atkins, a former SEC commissioner, as his choice to chair the Securities and Exchange Commission. These appointments suggest that Trump has intentions of fostering a regulatory environment conducive to crypto industry growth.
Moreover, the President-elect’s victory has reinvigorated the ETF market, with more than half a dozen cryptocurrency ETFs awaiting regulatory approval. These filings include products tied to leading altcoins like Solana (SOL), XRP, and Litecoin (LTC), signaling broader diversification in crypto financial products.
Vivek Ramaswamy’s Strategic Vision
Strive’s venture into Bitcoin Bonds aligns with Ramaswamy’s broader vision of leveraging capitalism to drive innovation and efficiency. Founded in 2022, Strive Asset Management has positioned itself as a forward-thinking player in the financial sector. While Ramaswamy briefly campaigned against Trump during the Republican presidential primaries, his subsequent endorsement and collaboration with the President-elect highlight shared values around economic innovation.
Ramaswamy’s participation in initiatives like the Department of Government Efficiency (DOGE), alongside Elon Musk, further demonstrate his commitment to streamlining operations and fostering growth in emerging sectors like cryptocurrency. Analysts suggest that his leadership could accelerate the mainstream adoption of Bitcoin Bonds and similar financial products.
Industry experts view Strive’s ETF filing as a potential game-changer for Bitcoin-related investments. Nate Geraci, a prominent ETF analyst, described the proposed ETF as a critical step in offering retail and institutional investors greater access to Bitcoin’s growth potential.
The move also raises questions about the broader implications of convertible bonds in Bitcoin's market dynamics. Unlike traditional bonds, convertible bonds offer the flexibility to convert into equity, providing investors with upside exposure to a company’s performance. For MicroStrategy, this has meant offering low- or no-interest bonds to fund Bitcoin purchases, effectively aligning its corporate growth with Bitcoin's valuation trajectory.
As Bitcoin continues to mature as an asset class, products like the Strive Bitcoin Bond ETF could play a pivotal role in bridging traditional finance and the cryptocurrency market. By providing managed exposure to Bitcoin-related convertible bonds, the ETF offers a novel way for investors to capitalize on Bitcoin's potential while diversifying their portfolios.
With Trump’s pro-crypto administration poised to redefine the regulatory landscape, Strive’s timing may prove fortuitous. The convergence of innovative financial products, corporate adoption, and favorable political conditions marks a new era for cryptocurrency investment strategies.
Privacy Transactions Triple as Bitcoin Whales Accelerate Accumulation
Meanwhile, the use of private Bitcoin transactions, enabled through processes like CoinJoin, has surged dramatically, tripling since 2022, according to a report by CryptoQuant. This increase is due to the growing activity of Bitcoin “whales” — large holders and accumulators — as they bolster their holdings amid rising institutional interest and adoption of Bitcoin-related financial products.
These whales, identified primarily as being linked to spot Bitcoin ETFs, MicroStrategy, and custodial wallets, have increasingly turned to privacy-centric tools like CoinJoin to anonymize their transactions, according to CryptoQuant CEO Ki Young Ju. In a post on Dec. 26, Young Ju explained that these high-net-worth Bitcoin holders frequently use privacy features to obfuscate transfers, especially when moving funds to institutional investors.
CoinJoin, a privacy-enhancing method in Bitcoin transactions, pools inputs and outputs from multiple users. This process creates a layer of anonymity by making it nearly impossible to determine who owns the resulting unspent transaction outputs (UTXOs). This increased privacy appeals to both individual and institutional Bitcoin holders seeking discretion.
Critics have argued that CoinJoin could be a tool for illicit activity, but Young Ju countered this notion by pointing out that only 0.5% of Bitcoin’s $377 billion in realized capital inflows in 2024 were tied to illicit activities, as reported by Chainalysis. These findings challenge the perception that privacy tools are predominantly used for money laundering or other illegal activities.
The surge in private transactions correlates with a growing appetite for Bitcoin among institutions. Entities such as MicroStrategy, which has pioneered corporate Bitcoin adoption, and Bitcoin ETFs, have significantly increased their holdings. MicroStrategy alone has purchased over $27 billion worth of Bitcoin since 2020, largely funded by convertible bonds and stock offerings.
Publicly disclosed Bitcoin holdings account for a significant portion of institutional adoption, but Young Ju highlighted an intriguing subset of unidentified whales. These entities are estimated to hold approximately 420,000 Bitcoin — worth over $40 billion at current prices. “Who are these whales?” Young Ju pondered in his post, sparking speculation among analysts and the broader crypto community.
The identity of these massive accumulators has become a hot topic. Some industry commentators suggest that a nation-state could be quietly amassing a Bitcoin reserve to hedge against traditional financial risks or sanctions. Others believe that a sanctioned country, such as Russia, could be leveraging Bitcoin as a tool to bypass international restrictions.
Russia recently enacted legislation permitting foreign trade settlements in Bitcoin and other cryptocurrencies, fueling theories about its potential involvement. If true, such a development could signify a paradigm shift in the geopolitical role of digital assets.
Regulatory Scrutiny of Privacy Tools
Despite their legitimate uses, privacy-focused tools like CoinJoin have drawn increased attention from regulators and law enforcement agencies worldwide. In April 2024, US authorities arrested the founders of Samourai Wallet, a non-custodial Bitcoin service offering CoinJoin functionality, and seized its website. The Department of Justice alleged that Samourai facilitated over $2 billion in unlawful transactions, including $100 million in money laundering linked to dark web markets like Silk Road and Hydra Market.
Similarly, Dutch authorities prosecuted Alexey Pertsev, the creator of Tornado Cash, a popular Ethereum-based mixing tool. Pertsev was found guilty of money laundering in May 2024. These cases bring attention to the delicate balance regulators must maintain between safeguarding financial privacy and curbing illicit activity.
Privacy tools like CoinJoin have become indispensable for Bitcoin users seeking discretion, particularly in an era of heightened institutional involvement. However, their potential for misuse has raised alarm bells, prompting global authorities to increase scrutiny and enforcement actions against service providers.
The broader crypto community remains divided on the future of privacy in the blockchain ecosystem. Proponents argue that privacy is a fundamental right and essential for Bitcoin’s utility as a decentralized, peer-to-peer currency. Critics, on the other hand, contend that unchecked anonymity could undermine the legitimacy of the digital asset market.
The tripling of CoinJoin transactions signals not only an evolving approach to Bitcoin adoption but also a growing sophistication among its largest stakeholders. As institutional interest continues to rise, so too will the demand for tools that enhance transaction privacy. At the same time, regulatory clarity and enforcement will shape the boundaries of how such tools are used.
Whether driven by institutional accumulation, speculative investments, or geopolitical strategies, the increasing use of privacy transactions reflects Bitcoin’s transformation from a fringe asset into a mainstream financial instrument. With its role in global finance continuing to expand, Bitcoin’s story is far from over — and the rising activity of whales suggests that its next chapter will be one of even greater intrigue and complexity.
