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On March 29, the firm announced its Grayscale Dynamic Income Fund (GDIF) stating that it is its first actively managed investment product.<\/p>\n
Grayscale added that the new fund aims to optimize income in the form of staking rewards associated with proof-of-stake crypto assets.<\/p>\n
It is the latest effort from the world\u2019s largest crypto asset manager to retain clients and capital following a huge exodus from its flagship product (GBTC) and its conversion to a spot Bitcoin ETF<\/a>.<\/p>\n Grayscale Dynamic Income Fund $GDIF<\/a> is our first actively managed investment product. It seeks to optimize income in the form of staking rewards associated with proof-of-stake digital assets. \u2014 Grayscale (@Grayscale) March 29, 2024<\/a><\/p>\n<\/blockquote>\n \u201cUsing qualitative and quantitative factors, we invest capital across a portfolio of proof-of-stake tokens,\u201d it stated.<\/p>\n<\/blockquote>\n The fund will monetize token rewards into cash on a weekly basis, distribute the earnings to investors quarterly, and rebalance tokens to optimize income.<\/p>\n The disclosed holdings of the fund were very vague. It will be comprised of 24% of the decentralized Cosmos exchange Osmosis token, OSMO. An additional 20% will be held in Solana (SOL), and 14% will be in Polkadot (DOT).<\/p>\n The remaining 43% was mysteriously labeled as \u201cother,\u201d and there was no mention of the world\u2019s largest proof-of-stake token, Ethereum.\u00a0The Portfolio Manager for GDIF is Matt Maximo, who has been with Grayscale Investments since 2021.<\/p>\n Additionally, the new fund is only available to high-net-worth individuals with assets under management of more than $1.1 million or a net worth of more than $2.2 million, and it has a 10% performance fee.<\/p>\n Grayscale\u2019s industry-leading Grayscale Bitcoin Trust (GBTC) has been hemorrhaging capital<\/a> since it converted to a spot ETF in January. The fund, which once held a whopping 620,000 BTC, has shrunk by 46%, having lost 284,846 BTC worth $20 billion over the past eleven weeks.<\/p>\n This week alone, GBTC has shed $967 million worth of BTC. However, competing products from BlackRock and Fidelity have scooped up more, reversing a trend<\/a> of outflows for Bitcoin ETFs.<\/p>\n GBTC, the largest Bitcoin fund, converted to an ETF, but decided to charge 6x-8x the fees of other Bitcoin ETFs. @Grayscale<\/a> \u2018s $GBTC<\/a> vs @BlackRock<\/a> \u2018s $IBIT<\/a> pic.twitter.com\/AxvalWPl2e<\/a><\/p>\n \u2014 HODL15Capital \ud83c\uddfa\ud83c\uddf8 (@HODL15Capital) March 30, 2024<\/a><\/p>\n<\/blockquote>\n The global staking market capitalization is around $355 billion, according<\/a> to Staking Rewards.<\/p>\n It lists ETH as the leading staking asset, with $110 billion worth staked. Solana is the second-largest with $72 billion staked, followed by SUI, Aptos, and Cardano, which have around $15 billion worth staked each.<\/p>\n The average reward rate is 6%, it reported, though many of the higher-cap coins, such as ETH, SUI, ADA, and BNB, are lower than that.<\/p>\n\n
For important disclosures and more information: https:\/\/t.co\/v5IR7nJQY1<\/a> pic.twitter.com\/YTBJzJJbTQ<\/a><\/p>\nGrayscale Goes Into Staking<\/h2>\n
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Staking Outlook<\/h2>\n