Grayscale Unveils Exclusive Crypto Staking Fund for High-Net-Worth Clients
Summary:
Grayscale Investments has launched the Grayscale Dynamic Income Fund, a unique investment fund exclusively for clients with $1.1 million assets under management or a net worth above $2.2 million. The fund involves converting blockchain staking rewards into US dollars, with weekly conversions and quarterly distributions. Grayscale will selectively include Proof of Stake tokens in the fund's portfolio. Apart from maximizing staking income, the fund aims to stimulate capital growth. The fund's portfolio will include the PoS tokens Osmosis, Solana, and Polkadot, amongst others. Meanwhile, Grayscale's Bitcoin exchange-traded fund is criticised over high fees, and their Ethereum Futures ETF faces regulatory approval challenges.
Grayscale Investments has launched a unique investment fund for savvy clients looking to inject their portfolios with revenue derived from staking digital currency. As per their latest announcement, the Grayscale Dynamic Income Fund (GDIC) is exclusively open for clients who possess over $1.1 million in assets under management (AUM) or who have a net worth exceeding $2.2 million. The scheme has plans to transform staking rewards into American dollars on a weekly basis, with investors set to receive payouts every quarter. Grayscale also stated that they will carefully analyze each Proof of Stake (PoS) token for inclusion in the fund's portfolio. The objective of this fund, primarily, is to maximize staking income from assets, with capital growth as a secondary aim, Grayscale has stated. Cryptocurrency staking ensures the blockchain network operates securely and efficiently by locking up crypto coins to produce interest or rate of return. The fund is set to contain three specified PoS tokens, with Osmosis (OSMO) making up 24%, Solana (SOL) 20%, and Polkadot (DOT) 14%; the remaining 43% is divided among other tokens. OSMO has a staking reward rate of about 11.09%, SOL is at 7.42%, and DOT's is about 11.9%, based on Staking Rewards data. Nevertheless, only Solana (SOL) is listed among the top ten PoS tokens by market capitalization, according to CoinMarketCap data. The cryptocurrency holdings can be altered depending on Grayscale's choice. Grayscale's spot Bitcoin exchange-traded fund (ETF), which debuted on 11th January, has been heavily critiqued over its high fees, causing massive outflows. As recently reported on March 26, the Grayscale Bitcoin Trust (GBTC) has seen continual daily outflows since its inauguration, crossing over $14 billion as of March 25. Grayscale's spot Bitcoin ETF imposes an annual management fee of 1.5%, which is five times the average 0.30% fee applied by other spot Bitcoin ETFs. Meanwhile, Grayscale's attempts to gain authorization for its Ethereum Futures exchange-traded fund (ETF) from the United States Securities and Exchange Commission (SEC) have been met with regulatory obstacles.
Published At
3/30/2024 8:35:21 AM
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