2024

Bitcoin

Grayscale Bitcoin Trust

James

Patient Capital Management filed with the SEC to purchase spot Bitcoin ETFs for 15% of its Opportunity Trust Fund.
According to <a href="https://www.sec.gov/Archives/edgar/data/1970751/000089418924001672/patientopportunitytrust497.htm" target="_blank" rel="noopener noreferrer nofollow">an updated filing</a> with the U.S. <a href="https://crypto.news/tag/sec/" target="_blank" rel="noopener noreferrer nofollow">SEC</a>, Patient Capital Management has amended its existing filing to update its risk factors. The application now states “cryptocurrency regulation risk” instead of “Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) risk.”
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 “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.” <cite>Patient Capital Management filing</cite>
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With the updated filing, Patient Capital Management has significantly expanded the fund’s investment capabilities to include all exchange-traded products (<a href="https://crypto.news/tag/ETP/" target="_blank" rel="noopener noreferrer nofollow">ETPs</a>) rather than the <a href="https://crypto.news/tag/Grayscale/" rel="noopener noreferrer nofollow">Grayscale</a> fund.
The firm is investing up to 15% of its capital in BTC ETPS—about $200 million, based on assets under management (<a href="https://crypto.news/tag/AUM/" target="_blank" rel="noopener noreferrer nofollow">AUM</a>) of $1.4 billion.
Along with Patient Capital Management, Grayscale <a href="https://crypto.news/grayscale-bitcoin-mini-trust-etf/" target="_blank" rel="noopener noreferrer nofollow">filed</a> a new application with the SEC, a Form S-1, to create the Grayscale Bitcoin Mini Trust.
Bloomberg analyst James Seyffart suggested&nbsp;the new fund was seeking to provide a tax advantage.
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 Here’s the language around the spinoff. There is no fee disclosed yet orrr what % of <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$GBTC</a> will spin off but pretty sure this will be a non-taxable event for a chunk of those shares to get into a cheaper and cost competitive product. <a href="https://t.co/eZutit3GXI" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/eZutit3GXI</a>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1767531941060804830?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 12, 2024</a>
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Launched in January 2024, Grayscale’s GBTC stood out among other spot Bitcoin <a href="https://crypto.news/tag/etf/" target="_blank" rel="noopener noreferrer nofollow">ETFs</a> with its relatively high 1.5% fee. As competition increases, Grayscale is disadvantaged due to its comparatively high fees.
You might also like: <a href="https://crypto.news/grayscale-outflows-continue-as-bitcoin-trust-sees-494-million-withdrawal/" rel="noopener noreferrer nofollow"> Grayscale outflows continue as Bitcoin Trust sees $494 million withdrawal </a>

Patient Capital Management replaces Grayscale Bitcoin Trust with crypto ETP

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