Patient Capital, a well-known asset manager with assets totaling more than $1.8 billion, has requested approval from the SEC to invest up to 15% of its funds in Bitcoin ETFs. This decision aligns with the increasing interest from investors in Bitcoin ETFs, leading to significant inflows in the market. Patient Capital is now directing its attention towards Bitcoin ETFs. The filing from March 11 states that Patient Capital intends to invest in exchange-traded products under the Securities Act of 1933 to gain exposure to Bitcoin. The focus will be primarily on Bitcoin ETPs, a change from the Fund’s previous investment in Grayscale’s Bitcoin Trust GBTC, which has now converted to a Bitcoin ETF. The Fund will be responsible for paying its portion of the management fees and other costs related to the Bitcoin ETFs, along with its own expenses, and will also have to pay brokerage fees when buying and selling shares of these ETFs. Additional information: Competition over fees intensifies as Grayscale considers separating from parent company; VanEck reduces fees to zero until 2025. Patient Capital has expressed interest in Bitcoin ETFs, but the filing also raises various concerns about the overall cryptocurrency market and Bitcoin specifically. The asset manager points out that auditing standards for Bitcoin may vary from those for registered US securities. The firm emphasizes the lack of regulation and transparency in digital asset platforms, which can make them vulnerable to fraud, manipulation, security breaches, and operational challenges. While Patient Capital is open to investing in the Bitcoin ETF market, it acknowledges that the value of Bitcoin and its investment in the market could be negatively impacted by these risks. There are concerns about the potential regulatory impact on investing in cryptocurrencies. The document also mentions that countries, such as the United States, could potentially enforce limitations or outlaw the future purchase, utilization, or trade of Bitcoin. Furthermore, the asset manager recognizes that the regulatory environment for cryptocurrencies in the United States is continuously evolving, and regulatory decisions could have a substantial impact on cryptocurrency investments. It is also important to note that Patient Capital understands the challenges in determining whether a digital asset falls under the category of a “security” according to federal securities laws, which could influence the asset’s worth. Additionally, Patient Capital highlights that market volatility and low trading volume in the secondary market may lead to substantial deviations from the actual value of Bitcoin ETFs. The company warns that the shares may be difficult to sell due to a lack of trading activity, potentially leading to losses. Patient Capital also points out concerns about Bitcoin ETFs having few authorized participants, market makers, and liquidity providers, which could affect trading and lead to discounts on the share price, wider bid-ask spreads, trading interruptions, and potential delisting.