Grayscale launches investment fund focused on crypto staking for wealthy clients

Grayscale Investments, a leading investment firm in the crypto sector, has announced the launch of a new investment fund specifically designed for sophisticated investors interested in exposing their portfolios to income from cryptocurrency token staking.

This unique fund, called the Grayscale Dynamic Income Fund, targets clients with significant wealth, requiring interested parties to have more than $1.1 million in assets under management or a net worth of more than $2.2 million.

Generating income through staking

Grayscale’s Dynamic Income Fund will focus on generating income through the staking (or staking) of Proof-of-Stake (PoS) tokens, a process of locking crypto tokens to support network security and efficiency, while interest accrues or rewards are earned. Grayscale emphasizes that the fund will convert weekly staking rewards into US dollars, with quarterly distributions for investors. The firm has also indicated that it will make a careful selection of the PoS tokens included in the fund’s portfolio, with a focus on maximizing income with capital growth as a secondary objective.

The fund’s initial portfolio will consist of Osmosis (OSMO) with a 24% share, Solana (SOL) with 20%, Polkadot (DOT) with 14%, and 43% spread across other tokens. With staking reward rates ranging from 7.42% for SOL to 11.9% for DOT, Grayscale’s new fund promises to be an attractive option for high-net-worth investors interested in the crypto market.

Large outflows from Grayscale’s ETF

The announcement comes amid news of Grayscale’s spot Bitcoin exchange-traded fund (ETF), which has seen significant outflows since its launch on January 11. The Grayscale Bitcoin Trust has reportedly experienced a total of over $14 billion in daily outflows since its inception.

Additionally, Grayscale has announced a 1.5% annual management fee for their Bitcoin ETF, significantly higher than the 0.30% average of other spot Bitcoin ETFs.