This $1.4B Fund Just Filed to Allocate Up to 15% to Bitcoin ETFs

U.S-based asset management firm Patient Capital files to invest up to 15% of its net assets in Bitcoin ETFs

The recent launch of spot Bitcoin ETFs has expanded investment options for institutional capital seeking Bitcoin exposure. Patient Capital Management, a Baltimore-based asset management company, is the latest firm to capitalize on the new products to expand its horizon.

In a recent filing with the United States Securities and Exchange Commission (SEC), the firm revealed plans to invest its net assets in Bitcoin through the various spot Bitcoin ETFs. The company’s filing indicates that it may invest up to 15% of the total assets held by the Patient Capital Management Opportunity Trust fund.

The fund holds around $1.38 billion in assets, with a 15% allocation to BTC meaning it could pour in as much as $207 million into Bitcoin. Going by its mission statement, the Opportunity Trust fund will also likely maintain the BTC exposure for a considerable period as its stated mission is to achieve “long term outperformance.”

Patient Capital Diversifies Outside Grayscale Bitcoin ETF

The latest Patient Capital filing reveals that this is not the fund’s first exposure to Bitcoin. Rather, the fund has since held bitcoin through Grayscale’s Bitcoin Trust, which recently converted into a spot Bitcoin ETF.

Hence, the updated fund prospectus replaced citations of Grayscale Bitcoin Trust (GBTC) with Bitcoin exchange-traded products (ETPs). Evidently, the firm may be considering or may have already moved its assets to other newly launched ETFs with friendly fees. Recall that Grayscale continues to charge an annual management fee of 1.5%, even though newcomers like BlackRock, VanEck, and Ark Invest only collect 0.1-0.25% in annualized fees.

Meanwhile, the Bitcoin ETFs have continued to thrive in their first two months since launching. As recently reported by Coinfomania, the total value of net assets held by these funds has surpassed $58 billion. This influx of capital has helped Bitcoin reach new highs.

Earlier in the day, Bitcoin crossed the $73,000 mark for the first time ever. Its $1.4 billion market cap also means that it surpassed Silver, to become the eighth largest asset globally.