Patient Capital Management replaces Grayscale Bitcoin Trust with BTC ETP in its portfolio.

Patient Capital Management has made changes to its Patient Opportunity Trust prospectus, replacing Grayscale Bitcoin Trust with other exchange-traded products (ETPs). The modifications also include acknowledging the “cryptocurrency regulatory risk” instead of “bitcoin risk” in the prospectus. This decision allows the fund to expand its investment options. The company stated in its filing that it plans to invest up to 15% of its capital in BTC ETPs, which could amount to over $200 million considering its $1.4 billion assets under management as of December 31, 2023. The fund may adopt a hodling strategy for its BTC investment. Patient Capital Management emphasized the risk of price fluctuations in BTC and the potential for countries, including the US, to restrict or ban the acquisition, use, or sale of bitcoin in the future. Meanwhile, Grayscale filed an S-1 form with the SEC to register a new “mini” version of its Grayscale Bitcoin Trust exchange-traded fund (ETF) on March 11. Analysts suggest that the new fund aims to offer tax advantages. As competition in the market intensifies, Grayscale faces a disadvantage with its higher management fee of 1.5% annually compared to other firms like VanEck, which announced the elimination of sponsor fees on its Bitcoin Trust ETF until March 31, 2025.