According to CryptoPotato, Grayscale announced the Grayscale Dynamic Income Fund (GDIF) on March 29, marking its first actively managed investment product. The new fund aims to optimize income in the form of staking rewards associated with proof-of-stake crypto assets. This move is part of Grayscale's efforts to retain clients and capital following a significant exodus from its flagship product, the Grayscale Bitcoin Trust (GBTC), and its conversion to a spot Bitcoin ETF.
The GDIF will invest capital across a portfolio of proof-of-stake tokens using qualitative and quantitative factors. The fund plans to monetize token rewards into cash on a weekly basis, distribute earnings to investors quarterly, and rebalance tokens to optimize income. The disclosed holdings of the fund include 24% in Osmosis token (OSMO), 20% in Solana (SOL), and 14% in Polkadot (DOT), with the remaining 43% labeled as 'other.' Notably, Ethereum, the world's largest proof-of-stake token, was not mentioned.
The GDIF's Portfolio Manager is Matt Maximo, who has been with Grayscale Investments since 2021. 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 carries a 10% performance fee. Meanwhile, Grayscale's GBTC has lost 46% of its value, or $20 billion, since converting to a spot ETF in January. Competing products from BlackRock and Fidelity have gained more, reversing a trend of outflows for Bitcoin ETFs. The global staking market capitalization is around $355 billion, with Ethereum leading the way with $110 billion worth staked, followed by Solana with $72 billion staked.
