Grayscale Investments has unveiled a specialized investment fund designed for sophisticated clients who want to capitalize on income generated from staking cryptocurrency tokens. The newly launched Grayscale Dynamic Income Fund is exclusively available to clients with assets under management exceeding $1.1 million or a net worth surpassing $2.2 million. The fund’s objective is to convert staking rewards into US dollars on a weekly basis, with distributions planned quarterly for investors. Grayscale emphasizes that it will conduct meticulous analysis when selecting proof-of-stake (PoS) tokens to include in the fund’s portfolio. The primary focus of the fund is to maximize staking income from the assets, with capital growth considered a secondary priority.
Crypto staking involves locking up crypto tokens to earn interest or rewards, which helps ensure the secure and efficient functioning of the blockchain network. Grayscale has identified three PoS tokens that will be held in the fund: Osmosis (OSMO) with a 24% share, Solana (SOL) with 20%, and Polkadot (DOT) with 14%, while the remaining 43% falls under other tokens. Currently, OSMO offers a staking reward rate of 11.09%, SOL offers 7.42%, and DOT stands at 11.9%, according to data from Staking Rewards. However, only SOL ranks among the top 10 PoS tokens in terms of market capitalization, according to CoinMarketCap data.
Grayscale retains the right to modify the crypto holdings at its discretion. In the meantime, the Grayscale Bitcoin Trust, a spot Bitcoin exchange-traded fund (ETF) launched on January 11, has experienced substantial outflows amounting to billions of dollars. Since its launch, the Grayscale Bitcoin Trust has recorded daily outflows of over $14 billion, as reported by Cointelegraph on March 26. It’s worth noting that Grayscale’s Bitcoin ETF charges a management fee of 1.5% per year, which is five times higher than the average of other spot Bitcoin ETFs (0.30%). Grayscale has also applied for an Ethereum Futures ETF, but the United States Securities and Exchange Commission recently postponed its decision on whether to approve the product.
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