Patient Capital Management has made changes to its Patient Opportunity Trust prospectus, as stated in a filing submitted to the United States Securities and Exchange Commission (SEC) on March 11. The revised prospectus now includes “cryptocurrency regulatory risk” instead of “bitcoin risk” in its risk factors section.
The filing reveals that the fund has expanded its investment options to include all exchange-traded products (ETPs), rather than just the Grayscale Bitcoin Trust. This move allows Patient Capital Management to invest up to 15% of its capital in BTC ETPs. With $1.4 billion in assets under management (AUM) 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.
In the filing, Patient Capital Management acknowledges the risk of price fluctuations in BTC and the potential for future restrictions or bans on the acquisition, use, or sale of bitcoin by countries, including the U.S.
On the same day, Grayscale filed an S-1 form with the SEC to register a new “mini” version of its Grayscale Bitcoin Trust (GBTC) as an exchange-traded fund (ETF). Bloomberg analyst James Seyffart suggested that the new fund aims to offer tax advantages.
As competition for investors 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 waive sponsor fees on the first $1.5 billion of funds in its Bitcoin Trust ETF until March 31, 2025.