Grayscale revealed the introduction of a new fund on Tuesday called the Grayscale Dynamic Income Fund (GDIF), marking a significant expansion of its product offerings. The GDIF is designed to stake specific cryptocurrencies and distribute the resulting earnings to investors in USD on a quarterly basis. This move represents Grayscale’s inaugural foray into actively managed crypto funds.
CEO Michael Sonnenshein emphasised the importance of GDIF as the company’s first actively managed fund, providing investors with the opportunity to engage in multi-asset staking through a single investment vehicle. The fund was initially funded with internal capital from Grayscale in October of the previous year, achieving notable gross returns of 142% and net fee returns of 127% since its inception.
Access to GDIF is limited to “qualified clients,” as defined by certain thresholds established by the Securities and Exchange Commission (SEC), including a minimum net worth of $2.2 million for individuals or assets under management of $1,100,000, as clarified in the fund’s press release.
The portfolio of staked cryptocurrencies includes Aptos (APT), Celestia (TIA), Coinbase Staked Ethereum (CBETH), Cosmos (ATOM), Near (NEAR), Osmosis (OSMO), Polkadot (DOT), Sei (SEI), and Solana (SOL).
Grayscale’s announcement of GDIF coincided with the conversion of its bitcoin trust to a bitcoin ETF in January, following a legal dispute with the SEC. This development coincided with Bitcoin (BTC) reaching a new all-time high on the same day, while spot bitcoin ETFs achieved a trading volume exceeding $9.5 billion, surpassing the previous record of $7.6 billion.