Grayscale’s Dynamic Income Fund is only available to investors who meet the requirements of having assets under management surpassing $1.1 million or a net worth exceeding $2.2 million. A fund for affluent investors willing to expose their holdings to profits from staking bitcoin tokens has been announced by Grayscale Investments.
Only clients with a net worth of more than $2.2 million or more than $1.1 million in assets under management are eligible to invest in the Grayscale Dynamic Income Fund, according to a recent statement.
The company plans to distribute funds to investors on a quarterly basis and convert weekly staking winnings into US dollars. Furthermore, according to Grayscale, a thorough selection process will be used to determine which proof-of-stake (PoS) tokens are included in the portfolio of the fund.
“Because every token has a unique timeline and stake and unstake requirement, Grayscale handles the complexity of staking and unstaking multiple tokens.”
According to Grayscale, the fund’s primary goal is to maximise net income from the assets, with capital growth coming in second.
Crypto staking secures the safe and effective operation of the blockchain network by locking up crypto tokens to generate interest or rewards.
Three PoS tokens have been identified by Grayscale as being held in the fund: Osmosis (OSMO), which has a 24% share, Solana, which has a 20% stake, and Polkadot, which has a 14% share. The remaining 43% of the tokens are classified as other tokens.
Staking Rewards data shows that OSMO presently gives a staking reward rate of 11.09%, SOL offers 7.42%, and DOT is at 11.9%. As per CoinMarketCap data, SOL is the only token among the top 10 PoS tokens in terms of market capitalization.
Since its introduction on January 11, Grayscale’s spot Bitcoin exchange-traded fund (ETF) has experienced billion-dollar withdrawals. It was reported on March 26 that since its inception, the Grayscale Bitcoin Trust has had daily withdrawals totaling more over $14 billion.
The annual management cost for Grayscale’s Bitcoin ETF is 1.5%, which is five times more than the 0.30% average for comparable spot Bitcoin ETFs.
The US Securities and Exchange Commission has been considering Grayscale’s application for an Ethereum Futures ETF, but has postponed deciding whether to approve the product.