Investors with a net worth of more than $2.2 million or more than $1.1 million in assets under management are the target audience for Grayscale Investments’ new Grayscale Dynamic Income Fund (GDIC).
Grayscale Investments has introduced the Grayscale Dynamic Income Fund (GDIC), an innovative investment vehicle that aims to provide savvy investors with a chance to profit from staking cryptocurrency tokens. The fund’s focus on the ultra-wealthy is evident from its requirements that investors have either a net worth of over $2.2 million or assets under management (AUM) of over $1.1 million.
Every week, GDIC plans to exchange staking awards for US dollars. Investors will have their gains distributed quarterly. Grayscale has made a point of being careful when selecting Proof of Stake (PoS) coins to add to the fund’s holdings, taking into account the fact that each token has its own unique criteria and staking schedule. The fund’s primary goal is capital growth; however, it does aim to maximize staking income.
In the beginning, Grayscale’s fund will hold three proof-of-stake tokens (PoS): OSMO (24% allocation), SOL (20%), and DOT (14% allocation), according to the company. Diverse tokens will make up the remaining 43% of the portfolio. This strategic decision was reached in consideration of the current staking reward rates, as reported by Staking Rewards: OSMO stands at 11.09%, SOL at 7.42%, and DOT at 11.9%.
On the same day, Grayscale launched a spot Bitcoin ETF, which has since drawn criticism for its excessive expenses and led to a withdrawal of more than $14 billion. Fund management fees for this Bitcoin exchange-traded fund (ETF) are 1.5 percent annually, which is far higher than the market average of 0.3 percent. In addition, Grayscale’s Ethereum Futures ETF has persisted in encountering regulatory hurdles in its pursuit of SEC clearance.
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