Crypto asset manager Grayscale is launching a new product focused on staking reward income.
In a new announcement, Grayscale says it does launch the Grayscale Dynamic Income Fund (GDIF), a new actively managed investment product that aims to earn profits from the staking rewards of proof-of-stake (PoS) crypto assets.
“GDIF is our first actively managed investment product. It aims to optimize revenue in the form of stake rewards associated with proof-of-stake digital assets.”
According to Grayscale’s websiteGDIF works by investing customer funds into PoS blockchain tokens that generate rewards. They would then be paid out and distributed accordingly. Grayscale also says it will rebalance the fund’s investments as necessary to optimize income.
Staked tokens are coins used to validate a blockchain’s network transactions and are essential to the infrastructure of a PoS blockchain. Staking requires validators to allocate tokens to the network, and in return they earn rewards.
Grayscale says the GDIF, whatever that was announced will convert these rewards, which are paid out in the blockchain’s own assets, into US dollars earlier this month.
“In exchange for securing the network through the validation of transactions, investors earn staking rewards. Staking rewards are paid in the native token of each blockchain. For GDIF, the plan is for staking rewards to be converted into USD on a weekly basis and paid out to investors on a quarterly basis.”
The GDIF marks a new offering in Grayscale’s growing line of institutional-scale crypto products.
In January, the company added a Bitcoin (BTC) exchange-traded fund (ETF) after a years-long battle with the U.S. Securities and Exchange Commission (SEC). contract platform Ethereum (ETH).
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney