- Patient Capital Management transitions from Grayscale to Bitcoin ETP to diversify investment portfolio.
- According to updated SEC filings, the company replaced the Grayscale Bitcoin Trust with Bitcoin ETP.
- The company plans to allocate $200 million to Bitcoin ETP.
Patient Capital Management, a prominent asset management firm with $1.4 billion in assets under management, has updated its investment strategy, switching from the Grayscale Bitcoin Trust to a Bitcoin exchange-traded product (ETP).
This move reflects a significant change in approach to digital asset exposure.
Patient capital management filled with SEC
Patient Capital Management filed paperwork with the U.S. Securities and Exchange Commission (SEC) on March 11 to expand its investment horizon by replacing its exclusive reliance on the Grayscale Bitcoin Trust.
The company now aims to increase its exposure within the rapidly evolving cryptocurrency market by allocating up to 15% of its net assets to Bitcoin ETPs.
This strategic change is not only about diversification, but also a proactive response to the changing regulatory environment.
The updated prospectus emphasizes “cryptocurrency regulatory risks” over “Bitcoin risks” and highlights the company’s awareness of the evolving legal and regulatory framework governing digital assets.
Replace all Grayscale BTC Trusts with Bitcoin ETP
This amendment replaces all references to the Grayscale Bitcoin Trust with references to Bitcoin ETP. This means that patient capital management moves from a single investment vehicle to a multifaceted approach.
This move has been driven by the desire to remain competitive and responsive to the dynamic cryptocurrency investment environment where institutional players are increasingly seeking exposure through a variety of financial products.
The filing reveals Patient Capital Management’s intention to invest up to $200 million in Bitcoin ETPs, demonstrating its significant commitment to the cryptocurrency space. The company’s decision is consistent with the general trend of institutional investors seeking cost-effective and flexible investment options beyond traditional vehicles, such as the Grayscale Bitcoin Trust.
These changes also shine a light on fee considerations among institutional investors. Grayscale’s Bitcoin Trust maintains its annual management fee at 1.5%, but new entrants such as VanEck and Ark Invest are offering lower fees, leading asset managers such as Patient Capital Management to explore more cost-effective options in the Bitcoin ETP environment.
Patient Capital Management’s move comes at a time when Bitcoin ETFs have gained traction, with total net assets surpassing $58 billion in the first two months.
The recent surge in the price of Bitcoin to $73,000 and its rise to the eighth-largest asset globally highlights the growing importance of digital assets in global financial markets.