Strive CEO Matt Cole made the case this week that digital credit — not exchange-traded funds — will become the dominant force in Bitcoin's evolution. Digital credit could fundamentally reshape investment strategies by offering a way to earn income on Bitcoin holdings, though the asset's notorious volatility introduces serious risks, Cole said.
The digital credit argument
Cole argued that Bitcoin's reputation as a pure store of value has limited its financial utility. Digital credit changes that by letting holders lend their Bitcoin to borrowers in exchange for interest — similar to how bondholders earn yield. That income stream could make Bitcoin portfolios more attractive to yield-hungry investors, especially in a low-rate environment. Cole positioned this as a bigger opportunity than the ETF boom, which has focused on price exposure alone.
“Digital credit is bigger than ETFs for Bitcoin's future,” Cole stated, according to the remarks. He sees the lending market drawing in capital that spot ETFs simply cannot reach, because credit offers a recurring return rather than just a bet on price appreciation.
The volatility catch
That promise comes with a hard edge. Bitcoin's price swings can be violent — drops of 20% or more in a single session are not unheard of. Credit arrangements that function smoothly in stable markets can unravel fast during a crash, leaving lenders exposed and borrowers facing margin calls. Cole acknowledged this risk as the central challenge. For digital credit to scale, platforms must build infrastructure that can survive those swings without a cascade of defaults.
Why the ETF comparison matters
ETFs have been the primary gateway for traditional investors dipping into Bitcoin. They offer simple, regulated exposure. But they don't generate yield. Digital credit adds an active income component that ETFs can't replicate. If Cole is right, money could start shifting away from passive ETF strategies and toward lending products — but only if the market trusts that those products can weather the next downturn.
Cole didn't announce any specific Strive products during his remarks. But his framing suggests the firm sees a build-out of institutional-grade credit infrastructure as the next big opportunity. Whether that infrastructure arrives in time to capture the wave — or whether volatility scares off lenders and regulators first — remains the open question. For now, Cole has drawn a clear line in the sand: digital credit, not ETFs, will define Bitcoin's next chapter.
