Bitcoin ETF Titan Grayscale Launches A Crypto Staking Fund To Offer Income To Investors

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Grayscale CEO Michael Sonnenshein said he's optimistic about the approval outlook for a spot Bitcoin ETF.
Grayscale CEO Michael Sonnenshein said he's optimistic about the approval outlook for a spot Bitcoin ETF.

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Grayscale has launched a new fund that stakes cryptocurrencies to generate income for investors.

The company’s CEO, Michael Sonnenshein, called the new fund “an important expansion” of the company’s product suite. 

Grayscale Launches Funds Trust and Files for Three New Crypto ETFs - WalletInvestor Magazin - Investing news

Grayscale Investors Can Participate In Multi-Asset Staking

Sonnenshein said the new fund gives investors access to “multi-asset staking” through a convenient and familiar “singular investment vehicle.”

The Grayscale Dynamic Income Fund (GDIF) will initially hold assets for nine blockchain networks, Grayscale said in a Mar. 5 press releasae.

These are Aptos (APT), Coinbase Staked Ethereum (CBETH), Polkadot (DOT), Near (NEAR), Solana (SOL), Celestia (TIA), Osmosis (OSMO), SEI Network (SEI) and Cosmos (ATOM). Rewards will be distributed on a quarterly basis and paid in U.S. dollars.

GDIF will not only give investors access to the passive income presented by crypto staking, but will also see Grayscale become more involved in the consensus of the nine networks it will initially hold assets for.

The networks the company has selected to feature in the fund all implement a Proof of Stake (PoS) consensus mechanism. This is a more eco-friendly alternative to the Proof of Work (PoW) consensus algorithm Bitcoin (BTC) is built off.

Instead of having to solve complex mathematical puzzles to validate blocks, as is the case with PoW networks, PoS chains select network validators based on their stake in the network’s native crypto.

Grayscale Bitcoin ETF Outflows Continue

The launch of DGIF comes as  Grayscale’s spot Bitcoin ETF, GBTC, continues to haemorrhage funds.

Since its conversion to a spot Bitcoin ETF (exchange-traded fund), GBTC has seen almost $10 billion in outflows, according to a Mar. 5 post on X by Bloomberg ETF analyst Eric Balchunas.

Despite these substantial outflows, he noted that GBTC’s assets under management remain at close to the same level when the fund converted to an ETF at the start of the year because of Bitcoin’s surging price. 

This surge in the market leader’s price has helped GBTC maintain its pre-conversion revenue levels despite the exodus of investors.

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