Patient Capital Management To Invest Up To 15% Of Book In Bitcoin ETFs

In a recent filing with the US Securities and Exchange Commission (SEC), Patient Capital Management has revised the prospectus for its Patient Opportunity Trust. The key change involves replacing Grayscale Bitcoin Trust (GBTC) with a broader range of exchange-traded products (ETPs) that invest primarily in Bitcoin (BTC).

According to the filing, the fund may now seek exposure to BTC by investing up to 15% of its net assets in registered Bitcoin ETPs. This move allows Patient Capital Management to diversify its BTC investments beyond the previously sole option of the Grayscale Bitcoin Trust.

The revised prospectus also acknowledges “cryptocurrency regulatory risk” as a potential factor, replacing the previous “bitcoin risk” terminology. This change reflects the fund’s recognition of the evolving regulatory landscape surrounding cryptocurrencies.

With approximately $1.4 billion in assets under management as of December 31, 2023, Patient Capital Management’s potential BTC investment could exceed $200 million. The fund, at least based on its website which uses the phrase “long-term” not sparingly, may apply a long-term holding strategy for its BTC investments.

Meanwhile, GBTC, which hasn’t been winning the BTC ETF game because of its comparatively high management fees, recently filed for a new “mini” version of its exchange-traded fund with the SEC, as reported by CoinTelegraph. The publication also noted that Bloomberg analyst James Sefart speculates this move could provide tax advantages that could help GBTC become a little more cost-competitive.

Also read: Grayscale Bitcoin Trust ETF Bleeds $515 Million On Tuesday

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