Grayscale Investments has announced an investment fund tailored for stylish clients desirous to expose their portfolios to income generated from staking cryptocurrency tokens.
According to a recent statement, the Grayscale Dynamic Income Fund (GDIC) is barely available to clients holding greater than $1.1 million assets under management (AUM), or with a net value of greater than $2.2 million.
The fund intends to convert staking rewards into US dollars weekly, with distributions planned quarterly for investors. Additionally, Grayscale claims that careful evaluation might be conducted to pick the Proof of Stake (PoS) tokens included within the fund’s portfolio.
“Grayscale manages the complexity of staking and unstaking multiple tokens as each token has its own individual timelines and requirements to be staked and unstaked.”
The fundamental priority of the fund is to maximise staking income from the assets, with capital growth as a secondary focus, in line with Grayscale.
Crypto staking involves locking up crypto tokens to earn interest or rewards, which in turn ensures the secure and efficient operation of the blockchain network.
Grayscale has named three PoS tokens that might be held within the fund, including Osmosis (OSMO) comprising a 24% portion, Solana (SOL) at 20%, and Polkadot (DOT) at 14%, while 43% is categorized under other tokens.
OSMO currently offers a staking reward rate of 11.09%, SOL stands at 7.42%, and DOT is at 11.9%, in line with data from Staking Rewards.
However, only Solana (SOL) ranks among the many top ten PoS tokens by market capitalization, as per CoinMarketCap data.
Meanwhile, Grayscale’s spot Bitcoin exchange-traded fund (ETF), which launched on Jan. 11, has faced scrutiny attributable to its high fees, leading to billions of outflows.
On March 26, Cointelegraph reported that the Grayscale Bitcoin Trust (GBTC) has seen each day outflows since its launch totaling over $14 billion as of March 25.
Related: Grayscale’s GBTC Bitcoin holdings have fallen 33% since its conversion
Grayscale’s Bitcoin ETF charges a 1.5% per yr management fee, five times that of the 0.30% average of the opposite spot Bitcoin ETFs.
On the opposite hand, Grayscale continues to face regulatory hurdles in securing approval from the United States Securities and Exchange Commission (SEC) for its Ethereum Futures exchange-traded fund (ETF).
Magazine: Bitcoin ETFs make Coinbase a ‘honeypot’ for hackers and governments: Trezor CEO
