Grayscale announces the launch of a staking exchange-traded fund

Investors will receive rewards in US dollars

06.03.2024 - 10:30

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2 min

Last updated on Aug 5, 2024

What’s new? Investment firm Grayscale has announced the launch of a new crypto exchange-traded fund focused on staking. Grayscale Dynamic Income Fund (GDIF) will allow investors to participate in staking multiple assets simultaneously and earn quarterly rewards for participating in blockchains with the Proof of Stake (PoS) consensus algorithm.

CoinDesk’s material

What else is known? Initially, GDIF will include nine assets: native tokens of the Aptos (APT), Celestia (TIA), Cosmos (ATOM), Near (NEAR), Osmosis (OSMO), Polkadot (DOT), SEI Network (SEI), and Solana (SOL) blockchains, as well as Ethereum coins staked using Coinbase’s US crypto exchange service, Coinbase Staked Ethereum (CBETH). Grayscale will stake the coins on behalf of investors and then pay them rewards in US dollars.

Grayscale is also the issuer of the largest spot bitcoin exchange-traded fund (ETF). Unlike the nine new funds also admitted to the US market on January 10 of this year, GBTC previously operated as a bitcoin trust.

However, its management fee is significantly higher compared to its competitors (1,5%), and the product experienced significant outflows after the opening of trading.

SEC postpones the deadline for BlackRock and Fidelity’s applications to launch spot ETH ETFs

The regulator sought public comment on the risks involved in launching such products

Thus, as of March 5, GBTC has $25,37 billion worth of bitcoins under management. At the same time, investors have withdrawn $9,6 billion from it since January 10.

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