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  • Patient Capital Management ditches Grayscale Bitcoin Trust for Bitcoin ETPs

    Patient Capital Management ditches Grayscale Bitcoin Trust for Bitcoin ETPs

    • 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.

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  • BitGo acquires HeightZero to bolster crypto wealth management services

    BitGo acquires HeightZero to bolster crypto wealth management services

    • BitGo acquires HeightZero to serve the growing institutional interest in crypto wealth management.
    • BitGo CEO, Mike Belshe, emphasizes the urgency for wealth managers and RIAs to prepare for an impending Bitcoin ETF approval.
    • HeightZero’s services enhance BitGo’s capacity to offer secure long-term crypto holdings for institutional clients.

    Cryptocurrency custody specialist BitGo has made a strategic move in the rapidly evolving digital asset landscape by acquiring HeightZero, a software platform dedicated to providing wealth managers with tools to incorporate cryptocurrencies into their clients’ portfolios.

    While the financial specifics of this acquisition have not been disclosed, the implications are clear for the growing institutional interest in the crypto market.

    Preparing for the imminent Spot Bitcoin ETF approval

    With the anticipated approval of a spot Bitcoin (BTC) exchange-traded fund (ETF), BitGo’s CEO, Mike Belshe, has issued a clear call to wealth managers and regulated investment advisors (RIAs) to take action before the ETF is launched. Belshe emphasized the importance of acting swiftly in light of the impending surge in Bitcoin demand that the ETF is expected to trigger.

    “RIAs should absolutely be calling up BitGo, getting HeightZero, getting qualified custody and doing it now, before the ETF,” Belshe said in a recent interview. “Because when the ETF hits, there’s going to be massive demand for bitcoin. Now, you can wait for the ETF, and then you can invest in that. But you’re going to miss out on a big growth.”

    HeightZero acquisition by BitGo

    HeightZero has been instrumental in simplifying the integration of cryptocurrencies into traditional wealth management practices. The platform offers a range of services, including portfolio rebalancing, statement generation, tax loss harvesting, and automated billing tailored specifically for crypto clients.

    This acquisition strengthens BitGo’s capabilities in facilitating secure long-term holdings for institutions entering the crypto market.

    BitGo recently secured $100 million in funding and has been actively seeking strategic acquisitions. While some companies in the crypto industry have faced financial challenges, BitGo’s approach underscores a commitment to a forward-looking strategy. The acquisition of HeightZero aligns with BitGo’s aim to be a leader in providing comprehensive cryptocurrency solutions to institutions, especially as the crypto market continues to evolve and gain traction among mainstream investors.

    This acquisition is a significant step for BitGo, marking a deliberate move towards servicing the wealth management sector as digital assets become an integral part of traditional investment portfolios.

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