Grayscale, a cryptocurrency asset management company, has announced the launch of its first actively managed cryptocurrency fund called the Grayscale Dynamic Income Fund (GDIF). This fund aims to generate income through the pledge of cryptocurrencies and distribute rewards in USD on a quarterly basis. However, it is only open to qualified clients.
According to a source close to Grayscale, GDIF was launched in October last year using internal funds obtained from Grayscale. So far, GDIF has achieved a total return rate of 142%, with a net return rate of 127% after deducting management fees. The fund currently includes nine blockchain assets: Aptos (APT), Celestia (TIA), Coinbase Staked Ethereum (CBETH), Cosmos (ATOM), Near (NEAR), Osmosis (OSMO), Polkadot (DOT), SEI Network (SEI), and Solana (SOL).
Michael Sonnenshein, the CEO of Grayscale, stated in a press release that pledging plays a crucial role in certain blockchains. For example, the Bitcoin network relies on proof-of-work (PoW), where miners solve complex mathematical problems to produce new bitcoins. On the other hand, blockchains like Ethereum allow token holders to pledge their assets to support the network’s operations, providing income for the pledgers.
However, GDIF, being a private fund, is only available to qualified clients, meaning individuals with a minimum net worth of $2.2 million. It is not open to the general public.
Grayscale is optimistic about the future of altcoins. After Bitcoin reached a new all-time high of over $69,000, Zach Pandl, the research director at Grayscale, believes it is a favorable time to bring cryptocurrency products to the market. Currently, the valuations of Ethereum and most other cryptocurrencies are still below the previous bull market cycle’s peak, and Grayscale sees potential in these tokens.
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