Grayscale Debuts Dynamic Income Fund Targeting Proof-of-Stake Tokens

Grayscale launches a new fund, Grayscale Dynamic Income Fund (GDIF), focused on proof-of-stake tokens for accredited investors. The actively managed fund aims to maximize income through staking rewards, catering to those with a net worth of over $2.2 million. GDIF will oversee the staking and unstaking of multiple tokens to optimize returns, providing a gateway to proof-of-stake assets for accredited investors seeking diversified portfolios and income-generating opportunities in the evolving crypto market.

Grayscale Announces Grayscale Dynamic Income Fund Focused on Proof-of-Stake Tokens

New York, NY - January 2023 - Grayscale Investments, a leading digital asset manager, has announced the launch of the Grayscale Dynamic Income Fund (GDIF), a closed-end fund that will actively manage a portfolio of proof-of-stake tokens for accredited investors.

Proof-of-Stake Investing

The GDIF will invest in digital assets that utilize the proof-of-stake consensus mechanism, a process that enables the validation of transactions on a blockchain network through the staking of tokens. Staking involves holding tokens in a cryptocurrency wallet to participate in the network's validation process, earning rewards in the form of newly created tokens.

Maximizing Income

The GDIF aims to optimize income for investors by dynamically allocating funds across multiple proof-of-stake tokens. The fund will actively monitor the staking rewards and market conditions of each token to maximize returns.

Eligibility Criteria

To be eligible to invest in the GDIF, investors must meet certain criteria, including having a net worth of at least $2.2 million. The fund will not be registered under U.S. securities laws and will be available exclusively to accredited investors.

EthereumPoW Review

Separately, Grayscale has extended its review period for the potential acquisition of EthereumPoW (ETHW) tokens. ETHW emerged after Ethereum's transition to a proof-of-stake consensus mechanism, known as "the Merge," in September 2022. Grayscale is evaluating the possibility of selling ETHW on behalf of shareholders who held Ethereum tokens on the record date of the Merge.

Grayscale's Cryptocurrency ETF

Grayscale's spot Bitcoin ETF, launched in January 2023, has witnessed success despite significant value losses in the cryptocurrency market. The fund remains the largest in terms of assets managed, indicating continued investor interest in cryptocurrency products.

Expert Perspectives

"The GDIF offers a unique opportunity for investors to access the evolving proof-of-stake ecosystem and potentially generate income through staking rewards," said Craig Salm, Senior Managing Director of Global Head of ETFs at Grayscale.

"Staking can be a complex and technical process, which is why we believe the GDIF's actively managed approach can provide value for investors seeking exposure to this growing market," added Ryan Watkins, Global Head of Product at Grayscale.

Commitment to Innovation

Grayscale's launch of the GDIF and its evaluation of ETHW tokens demonstrate its commitment to providing innovative investment opportunities in the digital asset space. The company is actively navigating the evolving regulatory landscape and the complexities associated with staking and blockchain technology.

Disclaimer

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Grayscale Dynamic Income Fund before investing. The fund is not registered under U.S. securities laws and is only available to accredited investors. Investors should consult with a financial advisor before making any investment decisions.