Cryptocurrency asset management company Grayscale announced on the 5th that it will launch its first actively managed cryptocurrency fund called the Grayscale Dynamic Income Fund (GDIF). This fund aims to generate income by pledging cryptocurrencies and distribute rewards in USD on a quarterly basis. However, it is only available to qualified customers.
GDIF is the first actively managed cryptocurrency fund launched by Grayscale. According to a source close to Grayscale, GDIF was launched in October last year with internal funding from Grayscale. So far, GDIF has a total return rate of 142%, and a net return rate of 127% after deducting management fees.
Currently, GDIF includes 9 blockchain assets: Aptos (APT), Celestia (TIA), Coinbase Staked Ethereum (CBETH), Cosmos (ATOM), Near (NEAR), Osmosis (OSMO), Polkadot (DOT), SEI Network (SEI), and Solana (SOL).
Grayscale CEO Michael Sonnenshein stated in the press release that pledging plays a crucial role in certain blockchains. The Bitcoin network relies on proof-of-work (PoW), where miners generate new bitcoins by solving complex mathematical problems. Ethereum, on the other hand, allows token holders to stake their tokens to support the network, which generates income for the stakers.
However, according to the press release, GDIF, being a private fund, is only available to qualified customers, i.e., customers with a minimum net worth of $2.2 million, and is not open to the public.
Grayscale is optimistic about the future of altcoins. After Bitcoin surpassed $69,000 and reached a new all-time high, Grayscale’s Head of Research, Zach Pandl, stated that this is a good day to bring cryptocurrency products to the market. Currently, the valuations of Ethereum and most other cryptocurrencies are still below the previous bull market cycle highs, and Grayscale sees potential in these tokens.