Compass Investments

Crypto vs. Dollar

📌 Grayscale launches new institutional cryptocurrency fund.

Institutional crypto asset manager Grayscale has launched a new product offering returns based on rate yields. Grayscale

– Institutional crypto asset manager Grayscale has launched a new product offering returns based on rate yields.

On March 29, the company launched the Grayscale Dynamic Income Fund (GDIF), which it said was its first actively managed investment product.

Grayscale added that the new fund aims to optimize the betting commission income associated with proof-of-stake crypto assets.

It is the latest attempt by the world’s largest crypto asset manager to retain clients and capital following the huge outflow of money from its flagship product (GBTC) and its conversion to a bitcoin-spot ETF.

Grayscale Dynamic Income Fund $GDIF is the company’s first actively managed investment product. Its goal is to optimize income in the form of betting fees associated with proof-of-stake digital assets.

Using qualitative and quantitative elements, we invest capital in a portfolio of proof-of-stake tokens,” the statement said.

The fund converts token rewards into cash on a weekly basis, distributes income to investors on a quarterly basis and rebalances tokens to optimize returns.

Information about the fund’s assets was very vague. The fund consists of 24% of OSMO, the decentralized tokens of the Cosmos exchange. Another 20% is held by Solana (SOL) and 14% by Polkadot (DOT).

The remaining 43% is coded as “other,” with no mention of Ethereum, the world’s largest auction proof-of-stake token. GDIF’s portfolio manager is Matt Maximo, who has been with Grayscale Investments since 2021. He has been with the company since 2021.

In addition, the new fund is only available to high net worth individuals with more than $1.1 million in assets under management or $2.2 million in net assets, and is subject to a 10 percent performance fee.

Industry leader Grayscale Bitcoin Trust (GBTC) has been losing capital since converting to a spot ETF in January. The fund, which once held 620,000 BTC, has lost 284,846 BTC worth $20 billion over the past 11 weeks, falling 46%.

GBTC lost 967 million BTC this week alone. However, competing products from BlackRock and Fidelity gained more, reversing the trend of outflows from bitcoin ETFs.

According to Staking Rewards, the global staking market capitalization is about $355 billion.

ETH is the leading asset in the staking market with a capitalization of $110 billion, followed by Solana with a capitalization of $72 billion, and SUI, Aptos and Cardano with capitalization of about $15 billion each.

The average reward rate is 6%, but many higher capitalization coins such as ETH, SUI, ADA and BNB have lower reward rates.

Bitcoin

Bitcoin

$64,102.16

BTC -0.82%

Ethereum

Ethereum

$3,062.59

ETH -1.31%

Binance Coin

Binance Coin

$561.80

BNB 0.67%

XRP

XRP

$0.51

XRP 2.83%

Dogecoin

Dogecoin

$0.16

DOGE 0.97%

Cardano

Cardano

$0.50

ADA 7.87%

Solana

Solana

$143.40

SOL -1.17%