Patient Capital Management recently made changes to its Patient Opportunity Trust prospectus by replacing Grayscale Bitcoin Trust, as reported in a filing with 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.

According to the filing, the Fund is now allowed to seek exposure to bitcoin by investing up to 15% of its net assets in exchange-traded products (ETPs) registered under the Securities Act of 1933 that primarily invest in bitcoin. This change replaces all mentions of Grayscale Bitcoin Trust with references to Bitcoin ETPs in the Prospectus and Statement of Additional Information.

This strategic move broadens the fund’s investment options to include various ETPs, rather than being limited to the Grayscale fund.

Patient Capital Management expressed its intention to invest up to 15% of its capital in BTC ETPs. With $1.4 billion in assets under management as of Dec. 31, 2023, the fund’s BTC investment could exceed $200 million. The fund seems to be adopting a hodling strategy for its BTC holdings, believing that volatility in the market is a trade-off for long-term returns.

The filing also highlighted the fund’s acknowledgment of the risks associated with fluctuations in the price of BTC and the potential for countries, including the U.S., to impose restrictions or bans on the acquisition, use, or sale of bitcoin in the future.

In a separate development, Grayscale filed an S-1 form with the SEC to register a new “mini” version of its Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF) on March 11. Analysts have suggested that this new fund aims to offer tax advantages to investors.

As competition in the cryptocurrency investment space intensifies, Grayscale faces challenges 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, attracting investor interest. For more updates and news on the cryptocurrency market, continue exploring Global Crypto News.

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