Grayscale Launches Staking Fund with 9 Different Assets
Grayscale, the powerhouse behind the largest Bitcoin spot ETF in the market, has announced a new fund designed to stake specific cryptocurrencies and distribute profits back to investors.
The newly launched fund, named GDIF (Grayscale Dynamic Income Fund), encompasses assets from 9 different blockchains:
- Aptos (APT)
- Celestia (TIA)
- Coinbase Staked Ethereum (CBETH)
- Cosmos (ATOM)
- Near (NEAR)
- Osmosis (OSMO)
- Polkadot (DOT)
- SEI Network (SEI)
- Solana (SOL)
As we've built our product family, we've only ever incorporated passive strategies. This week, that changes.
— Grayscale (@Grayscale) March 5, 2024
Meet Grayscale Dynamic Income Fund (GDIF), our first actively managed investment product, focused on multi-asset staking. Here’s how it works: (1/5) pic.twitter.com/oJEAskutXG
The fund was seeded with internal capital from Grayscale since October last year. To date, the fund has reported a gross profit of 142%, a trusted source revealed.
Profits from the product will be distributed in USD quarterly. According to Grayscale CEO Michael Sonnenshein, GDIF represents a significant expansion within their product suite, aiming to streamline the staking process for clients.
To participate, individual investors must meet SEC requirements. They need to either have a minimum net worth of $2.2 million, excluding the value of their primary residence, or manage at least $1.1 million in assets.
Recently, staking has become a highly popular trend, particularly crucial in certain blockchains. While Bitcoin relies on Proof-of-Work, where miners solve complex mathematical puzzles to mint new Bitcoins, Proof-of-Stake networks like Ethereum offer a simpler approach, allowing token holders to stake their assets to operate the system. This is the operational model of staking, which generates passive income for asset holders.
Grayscale appears to have carefully calculated its move to introduce this new product, especially as Bitcoin recently returned to its previous high of $69,000. However, Zach Pandl, leader of Grayscale's research division, cautioned that valuations of Ethereum and most other tokens still lag behind their previous cycle highs. Pandl also warned that while the macroeconomic backdrop remains favorable, there could still be headwinds causing market fluctuations.
Earlier this year, with SEC approval, Grayscale successfully converted its Bitcoin trust into an ETF product after a prolonged legal battle with US regulators.
