USDBitcoin Bonds, Protective ETFs, and Mining: 2025's Crypto Investment Revolution
Strive Asset Management Files for Strive Bitcoin Bond ETF, Targeting Institutional Investors
Strive Asset Management, co-founded by Vivek Ramaswamy, has officially filed an application with the SEC for the Strive Bitcoin Bond ETF, a novel investment vehicle focused on bonds issued by companies primarily engaged in Bitcoin purchases, including MicroStrategy. This ETF is innovative as it will utilize derivatives such as swaps and options to optimize its investment strategy, enhancing its appeal to institutional investors. With a growing interest in Bitcoin, MicroStrategy recently acquired 1,070 BTC, showcasing its robust engagement in the cryptocurrency space. The filing aligns with a broader trend of corporations increasingly adopting Bitcoin as part of their treasury strategy, creating a conducive environment for this ETF's potential success.
Market participants are currently awaiting the SEC's decision on the application, as approval could catalyze significant institutional investment and demand for Bitcoin, potentially driving up its price. Additional market dynamics, such as Ramaswamy's political ties, a possible Donald Trump election win, and overall rising cryptocurrency adoption, further amplify speculative optimism surrounding Bitcoin's price trajectory. This move reflects a crucial development in the intersection of traditional finance and digital assets, indicating a strategic shift towards integrating cryptocurrencies into mainstream investment portfolios.
Calamos Launches CBOJ ETF Offering 100% Downside Protection for Bitcoin Investors
Calamos Investments is set to launch the CBOJ, an innovative Bitcoin exchange-traded fund (ETF) offering 100% downside protection, scheduled to debut on the Chicago Board Options Exchange (CBOE) on January 22, 2025. This ETF aims to address the historically high volatility of Bitcoin by combining US Treasury bonds with options linked to the CBOE Bitcoin US ETF Index, providing a transparent and regulated investment vehicle. CBOJ builds upon the firm's successful Structured Protection ETF series, which introduced similar downside mechanisms for stock indices. With an annual reset feature, CBOJ will provide investors with a new cap on potential gains each year while guaranteeing full protection against declines over the next 12 months.
Calamos aims to meet the growing demand from advisors, institutions, and cautious investors who seek to participate in Bitcoin's growth potential without facing significant risks. The ETF's structure allows exposure to Bitcoin without direct ownership, making it particularly attractive to risk-averse investors concerned about price volatility. As the market for derivatives-based Bitcoin ETFs expands, industry observers anticipate that more firms will follow Calamos's approach in rolling out protective solutions for cautious investors, setting a precedent in the crypto investment landscape.
Phoenix Group Launches 50 MW Bitcoin Mining Facility in North Dakota
Phoenix Group has made significant strides in its expansion into the US market by launching a 50 MW Bitcoin mining facility in North Dakota, which adds over 2.7 exahashes to its processing capacity. This project, completed in just five months, showcases the company's efficiency in executing complex undertakings. The North Dakota site represents an important development following the establishment of a 25 MW facility in South Carolina, reinforcing the US's strategic role in the company's growth plans. Reza Nedjatian, CEO of Global Mining Operations, emphasized that the US is a pivotal hub for mining activities.
Phoenix Group, the largest crypto mining operator in the MENA region, raised $370 million through its IPO on the Abu Dhabi Securities Exchange, with demand exceeding forecasts by 180 times. With an ambition to enhance its global presence, the company is considering a Nasdaq listing in 2025. The dual focus on sustainability and advanced technology underscores Phoenix Group's commitment to maximizing energy efficiency and performance. This North Dakota project marks a critical phase in the company's strategy to scale operations and solidify its leadership in the fast-evolving blockchain industry, particularly as crypto adoption surges in the United States.
Nasdaq ISE Proposes Tenfold Increase in Bitcoin ETF Options Limit to Boost Liquidity
Nasdaq ISE proposed a significant increase in the position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT), seeking to raise the cap from 25,000 contracts to 250,000. This decision is driven by IBIT's robust market presence, reflecting a market cap of $46.8 billion and an average daily trading volume of 39.4 million shares, which necessitates more substantial trading flexibility. The proposed limit of 250,000 contracts represents only 2.89% of IBIT's total outstanding shares, a conservative figure compared to similar ETFs like SPDR Gold Shares (GLD) and iShares Silver Trust (SLV).
If approved by the SEC within a 45-day window, this change is poised to enhance market liquidity and provide institutions with better risk management tools. Nasdaq ISE believes that this adjustment will foster a more efficient and competitive trading environment. The overall growth in digital assets has been remarkable, with Bitcoin ETFs leading the charge, yielding $585 million in inflows during the first three days of 2025 and $44.2 billion throughout 2024, underscoring the increasing investment interest and capital flow into the cryptocurrency market.
Standard Chartered Launches Crypto Custody Services in Europe Following Luxembourg License Approval
Standard Chartered has launched cryptocurrency services in Europe following the acquisition of a digital asset license in Luxembourg. This initiative allows the bank to establish a new entity that will serve as its EU regulatory entry point for crypto and digital asset custody services, coinciding with the implementation of the EU's Markets in Crypto-Assets (MiCA) Regulation. Laurent Marochini, the former head of innovation at Société Générale, has been appointed as CEO of the Luxembourg entity. Initially, the bank's offerings will focus on custody services for Bitcoin and Ether, with additional assets expected to be added later in 2025.
Standard Chartered explicitly noted that trading services will not be available at launch, as there is no current timeline for trading offerings. The bank emphasizes high-security standards for its custody services and aims to support institutional clients within the evolving digital asset landscape. This European expansion follows the bank's introduction of crypto custody services in the UAE in September 2024, where it also offered Bitcoin and Ether exposure.
This article has been refined and enhanced by ChatGPT.
