Patient Capital Management has made changes to its Patient Opportunity Trust prospectus, replacing Grayscale Bitcoin Trust. This update was submitted to the United States Securities and Exchange Commission (SEC) on March 11. Along with this change, the risk factors in the prospectus have also been modified, with “cryptocurrency regulatory risk” replacing “bitcoin risk.”
The revised filing states that the fund now includes all exchange-traded products (ETPs) as investment options, rather than just the Grayscale fund.
According to the filing, Patient Capital Management plans to invest up to 15% of its capital in BTC ETPs. With $1.4 billion in assets under management as of December 31, 2023, the fund’s BTC investment could exceed $200 million. The fund may adopt a hodling strategy for its BTC, as indicated on its website.
The filing also highlights that the fund acknowledges the risk of fluctuations in the price of BTC and the potential for future restrictions or bans on the acquisition, use, or sale of bitcoin by countries, including the U.S.
Grayscale also made a filing with the SEC on March 11, submitting an S-1 form to register a new “mini” version of its Grayscale Bitcoin Trust exchange-traded fund (ETF). Bloomberg analyst James Seyffart suggests that this new fund aims to offer tax advantages.
As competition in the market intensifies, Grayscale faces a disadvantage due to its relatively high management fee of 1.5% annually. In contrast, VanEck announced on March 11 that it would eliminate sponsor fees on the first $1.5 billion of funds in its Bitcoin Trust ETF until March 31, 2025.