Patient Capital Management ditches Grayscale Bitcoin Trust for Bitcoin ETPs

Patient Capital Management ditches Grayscale Bitcoin Trust for Bitcoin ETPs

By Charles Thuo - min read
  • Patient Capital Management shifts from Grayscale to Bitcoin ETPs diversify investment portfolio.
  • An updated SEC filing shows that the firm has replaced Grayscale Bitcoin Trust with Bitcoin ETPs.
  • The firm plans to allocate $200 million to Bitcoin ETPs.

Patient Capital Management, a prominent asset management firm with $1.4 billion in assets under management, has updated its investment strategy pivoting from the Grayscale Bitcoin Trust to Bitcoin Exchange Traded Products (ETPs).

The move reflects a significant shift in its approach to digital asset exposure.

Patient Capital Management filling with the SEC

Patient Capital Management made a filing with the U.S. Securities and Exchange Commission (SEC) on March 11 expanding its investment horizon by replacing its exclusive reliance on the Grayscale Bitcoin Trust.

The firm now aims to allocate up to 15% of its net assets to Bitcoin ETPs, broadening its exposure within the rapidly evolving cryptocurrency market.

This strategic shift is not only about diversification but also a proactive response to the changing regulatory landscape.

The updated prospectus emphasizes “cryptocurrency regulatory risk” over “Bitcoin risk,” underlining the firm’s awareness of the evolving legal and regulatory framework governing digital assets.

Replacing all Grayscale BTC Trust with Bitcoin ETPs

The amendment replaces all references to the Grayscale Bitcoin Trust with mentions of Bitcoin ETPs, signifying Patient Capital Management’s departure from a single investment vehicle to a diversified approach.

The move is fueled by a desire to stay competitive and responsive to the dynamic cryptocurrency investment landscape, where institutional players are increasingly seeking exposure through various financial instruments.

The filing reveals Patient Capital Management’s intent to invest up to $200 million in Bitcoin ETPs, showcasing a substantial commitment to the cryptocurrency space. The firm’s decision aligns with the prevailing trend where institutional investors seek cost-effective and flexible investment options beyond traditional vehicles like the Grayscale Bitcoin Trust.

This shift also sheds light on the fee considerations among institutional investors. While Grayscale’s Bitcoin Trust maintains an annual management fee of 1.5%, newer entrants like VanEck and Ark Invest offer lower fees, prompting asset managers like Patient Capital Management to explore more cost-efficient options in the Bitcoin ETP landscape.

Patient Capital Management’s move comes at a time when Bitcoin ETFs have gained traction, surpassing $58 billion in total net assets within their first two months.

The recent Bitcoin price surge to $73,000 and its elevation to the eighth-largest asset globally underscore the growing prominence of digital assets in the global financial market.