tl;dr
Patient Capital Seeks Permission to Invest in Bitcoin ETFs Patient Capital, a prominent asset manager with over $1.8 billion in assets under management, is seeking to allocate up to 15% of its funds to Bitcoin ETFs, reflecting the growing interest in these index funds. This move comes as...
Patient Capital Seeks Permission to Invest in Bitcoin ETFs
Patient Capital, a prominent asset manager with over $1.8 billion in assets under management, is seeking to allocate up to 15% of its funds to Bitcoin ETFs, reflecting the growing interest in these index funds. This move comes as the Bitcoin ETF market is experiencing significant inflows, reflecting growing interest from institutional and retail investors in these newly approved index funds. The asset manager aims to seek exposure to Bitcoin through investments in exchange-traded products registered under the Securities Act of 1933 and primarily focus on Bitcoin. These plans mark a shift from the Fund’s previous exposure to Grayscale’s Bitcoin Trust, which recently converted to a Bitcoin ETF.
The filing with the US Securities and Exchange Commission raises concerns related to auditing standards, regulatory impact, and market volatility. Patient Capital acknowledges that auditing standards for Bitcoin may differ from those for registered US securities and highlights the unregulated nature and lack of transparency surrounding digital asset platforms. Potential risks such as regulatory restrictions or even the potential future outlaw of Bitcoin could significantly impact the nature of cryptocurrency investments. Furthermore, market volatility and limited trading activity in the secondary market for Bitcoin ETFs could result in significant premiums or discounts to the net asset value, wider bid-ask spreads, trading halts, and delisting, according to the company's statement in the filing. The asset manager indicates its understanding of increased institutional interest in cryptocurrencies but also underscores the risks associated with the cryptocurrency market.
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