Grayscale introduces a crypto investment fund that prioritizes savings rewards
Grayscale Investments has announced an investment fund for sophisticated clients looking to diversify their portfolios with income from depositing cryptocurrency tokens.
According to a recent statement, the Greyscale Dynamic Income Fund (GDIC) is only available to clients with assets under management (AUM) of more than $1.1 million, or a net worth of more than $2.2 million.
The Fund intends to convert stock awards into US dollars with scheduled quarterly distributions to investors. In addition, Greyscale claims that careful analysis is done to select the Proof of Stake (PoS) tokens included in the fund's portfolio.
“Grayscale manages the complexity of sorting and resolving multiple tokens for stock and not losing, as each token has its own timelines and requirements.”
The fund's primary priority is to maximize the return on equity from its assets, with capital growth as a secondary focus, according to Grayscale.
Crypto staking involves locking crypto tokens to earn interest or rewards, which ensures the secure and efficient operation of the blockchain network.
Grayscale named three PoS tokens to be held in the fund: Osmosis (OSMO) 24%, Solana (SOL) 20% and Polkadot (DOT) 14%, with 43% allocated under other tokens.
OSMO is currently at 11.09%, SOL at 7.42%, and DOT at 11.9%, according to data from Staking Rewards.
However, according to CoinMarketCap data, only Solana (SOL) ranks among the top ten POS tokens by market capitalization.
Meanwhile, Greyscale's spot bitcoin exchange-traded fund (ETF), which launched on January 11, has faced scrutiny for its high fees, resulting in billions in outflows.
In the year On March 26, Cointelegraph reported that the Greyscale Bitcoin Trust (GBTC) has seen daily outflows since March 25, when it has withdrawn a total of more than $14 billion.
Related: Greyscale's GBTC Bitcoin holdings down 33% since conversion
Greyscale's Bitcoin ETF charges an annual management fee of 1.5%, five times the 0.30% average of other Bitcoin ETFs elsewhere.
On the other hand, Grayscale has faced regulatory hurdles to obtain approval from the United States Securities and Exchange Commission (SEC) for its Ethereum Futures exchange-traded fund (ETF).
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