The Grayscale’s GDIF will enable investors to earn passively from staking APT, TIA, CBETH, ATOM, NEAR, OSMO, DOT, SEI, and SOL.
Grayscale Investments has introduced a new fund dubbed the Grayscale Dynamic Income Fund (GDIF) managed by Grayscale Advisors to enable investors to stake and earn through the altcoin market. According to the announcement, the GDIF will first tap on nine top-tier blockchains including Aptos (APT), Celestia (TIA), Coinbase Staked Ethereum (CBETH), Cosmos (ATOM), Near (NEAR), Osmosis (OSMO), Polkadot (DOT), SEI Network (SEI), and Solana (SOL).
The rewards earned from the GDIF staking program will be distributed among the qualified investors quarterly. Notably, the GDIF will be managed by Grayscale Advisors, LLC, an SEC-registered investment advisor, with years of experience in the web3 space.
“As our first actively managed Fund, GDIF is an important expansion of our product suite and enables investors to participate in multi-asset staking through the convenience and familiarity of a singular investment vehicle,” Grayscale CEO Michael Sonnenshein, noted.
Grayscale Advisors is focused on investors with a current net worth of at least $2.2 million, excluding the primary residence and assets under management of $1.1 million.
GDIF and the Crypto Staking Industry
The introduction of the GDIF is crucial to the stability of Proof-of-Stake (PoS) secured blockchains amid the mainstream adoption of web3 ecosystems and digital assets. The PoS validators are rewarded per every block successfully closed, thus making it a lucrative venture compared to the Proof-of-Work (PoW) consensus method that demands regular hardware updates in addition to fluctuating electricity consumption.
However, the Grayscale Dynamic Income Fund has been criticized for ignoring some top-tier staking blockchains like Cardano (ADA), and Sui (SUI), among others. Furthermore, Grayscale has a heavy influence on the cryptocurrency market especially through its high assets under management (AUM). Additionally, Grayscales GBTC is the largest spot Bitcoin ETF issuer amid highly competitive fund managers like BlackRock Inc (NYSE: BLK).
Nevertheless, Grayscale Advisors could further diversify the GDIF fund in the near future to attract more investors. Moreover, every staking blockchain offers different APYs and the growth of the respective tokens is unique depending on the underlying protocol.
Market Check
The introduction of the GDIC has coincided with the ongoing gradual crypto bullish awakening. For the first time in the history of Bitcoin’s bull cycles, the instrument rallied towards the all-time high (ATH) more than a month before the halving event. As a result, most experts believe this bull cycle could be a super cycle fueled by institutional investors.
Notably, the global cryptocurrency market valuation has comfortably closed above $2.6 trillion fueled by notable cash inflows over the past few months. Bitcoin remains the favorite among institutional investors due to its scarcity and deep liquidity.
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