Grayscale’s New Investment Fund to Maximize Staking Income

New Grayscale Dynamic Income Fund focuses on optimising crypto staking rewards for sophisticated investors with over $1.1 million assets under management or a net worth of more than $2.2 million.

Grayscale's New Investment Fund to Maximize Staking Income

Grayscale Investments has introduced a new investment fund specifically tailored to maximise income generated from staking cryptocurrency tokens.

It will focus on proof-of-stake digital assets, with capital appreciation from these investments being only the secondary goal. The assets for the portfolios will be chosen upon careful analysis. Token rewards will be monetised into cash every week, while distributions for investors are to be paid out quarterly.

All the complexities of staking and unstacking multiple tokens according to their timelines and other requirements will be managed by Grayscale. The firm also promises to take care of maximising the staking rewards available.

The fund is available only for select clients who meet the requirements of having more than $1.1 million assets under management or a net worth of over $2.2 million.

At present, Grayscale has named three PoS tokens that will be held in the fund: Osmosis (OSMO), Solana, and Polkadot. These three tokens combined will contribute to the main part of the fund, while 43% of assets are categorized under other tokens in different proportions. The staking rewards of the three main tokens involved range between 7,5% and 12%.

The Fund will not be registered as an investment company under the U.S. Investment Company Act of 1940. That means while the Fund will not be required to adhere to certain restrictions and requirements, investors will not receive the protections of the Investment Company Act.

Earlier this year, Grayscale had its Spot Bitcoin ETF Fund approved by the SEC, enabling its investors to have direct exposure to the price of Bitcoin without actually buying it or dealing with self-custody.

However, according to recent reports, the Grayscale Bitcoin Trust has seen daily outflows totalling over $14 billion since its launch. The alarming statistics may be attributed to the high management fee which is five times that of the 0.30% average fee charged by other spot Bitcoin ETFs.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.