Grayscale unveils cryptocurrency investment fund emphasizing staking rewards

Grayscale Investments has unveiled a specialized investment fund designed for sophisticated clients who want to include cryptocurrency staking income in their portfolios. According to a recent announcement, the Grayscale Dynamic Income Fund is exclusively available to clients with assets under management exceeding $1.1 million or a net worth surpassing $2.2 million. The fund aims to convert staking rewards into US dollars on a weekly basis, with quarterly distributions planned for investors. Additionally, Grayscale assures that thorough analysis will be conducted to select the proof-of-stake (PoS) tokens included in the fund’s portfolio. The primary objective of the fund is to maximize staking income from the assets, with capital growth considered a secondary focus. Crypto staking involves locking up crypto tokens to earn interest or rewards, ensuring the secure and efficient operation of the blockchain network. Grayscale has specified three PoS tokens that will be held in the fund: Osmosis (OSMO) with a 24% share, Solana (SOL) with 20%, and Polkadot (DOT) with 14%, while the remaining 43% is allocated to other tokens. As per data from Staking Rewards, OSMO currently offers a staking reward rate of 11.09%, SOL offers 7.42%, and DOT stands at 11.9%. However, only SOL ranks among the top 10 PoS tokens in terms of market capitalization, according to CoinMarketCap data. The cryptocurrency holdings in the fund are subject to change at Grayscale’s discretion. Meanwhile, Grayscale’s Bitcoin spot exchange-traded fund (ETF), which launched on January 11, has witnessed significant outflows. Since its launch, the Grayscale Bitcoin Trust has experienced daily outflows exceeding $14 billion, as reported by Cointelegraph on March 26. Grayscale’s Bitcoin ETF charges an annual management fee of 1.5%, which is five times higher than the 0.30% average of other Bitcoin spot ETFs. Grayscale has also filed for an Ethereum Futures ETF, although the United States Securities and Exchange Commission recently postponed a decision on whether to approve the product.