Patient Capital Management replaces Grayscale Bitcoin Trust with crypto ETP

Patient Capital Management filed with the SEC to purchase spot Bitcoin ETFs for 15% of its Opportunity Trust Fund.

According to an updated filing with the U.S. SEC, Patient Capital Management has amended its existing filing to update its risk factors. The application now states “cryptocurrency regulation risk” instead of “Bitcoin (BTC) risk.”

“All references to Grayscale Bitcoin Trust throughout the Summary Prospectus are replaced with references to Bitcoin ETPs. Previously, the fund’s exposure to Bitcoin was limited to investment in Grayscale Bitcoin Trust, a privately offered investment vehicle whose shares were also over-the-counter shares and which recently converted to a Bitcoin ETP.”

Patient Capital Management filing

With the updated filing, Patient Capital Management has significantly expanded the fund’s investment capabilities to include all exchange-traded products (ETPs) rather than the Grayscale fund.

The firm is investing up to 15% of its capital in BTC ETPS—about $200 million, based on assets under management (AUM) of $1.4 billion.

Along with Patient Capital Management, Grayscale filed a new application with the SEC, a Form S-1, to create the Grayscale Bitcoin Mini Trust.

Bloomberg analyst James Seyffart suggested the new fund was seeking to provide a tax advantage.

Launched in January 2024, Grayscale’s GBTC stood out among other spot Bitcoin ETFs with its relatively high 1.5% fee. As competition increases, Grayscale is disadvantaged due to its comparatively high fees.