Grayscale Introduces Dynamic Income Fund for Crypto Staking
Grayscale Investments has introduced a new investment product designed for sophisticated clients looking to tap into the income generated from staking cryptocurrency tokens.
The recently announced 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’s strategy involves converting staking rewards into US dollars on a weekly basis, with distributions planned quarterly for investors. Grayscale asserts that a meticulous selection process will be employed to curate the proof-of-stake (PoS) tokens featured in the fund’s portfolio, managing the complexities of staking and unstaking multiple tokens with individual timelines and requirements.
The primary objective of the fund is to optimize staking income from the assets, with capital growth serving as a secondary goal.
Crypto staking involves locking up crypto tokens to earn interest or rewards, contributing to the secure and efficient functioning of the blockchain network.
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Grayscale has disclosed three PoS tokens to be included in the fund: Osmosis with a 24% share, Solana with 20%, and Polkadot representing 14%, while the remaining 43% is allocated to other tokens.
Presently, OSMO offers a staking reward rate of 11.09%, SOL offers 7.42%, and DOT stands at 11.9%, according to data from Staking Rewards. However, only SOL ranks among the top 10 PoS tokens by market capitalization.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
