Grayscale, the world’s largest digital asset management company, announced today that it has launched a new investment fund for accredited investors with a net worth of at least $2.2 million. The fund, known by the abbreviation GDIF, will focus on investing in proof-of-stake tokens.
Although Grayscale does not disclose exactly which altcoins it will invest in, those with proof-of-stake feature include altcoins such as Ethereum, BNB, Avalanche, Cardano, NEAR, Aptos.
This marks Grayscale’s first foray into actively managed investment products. The firm stated that this financial instrument will aim to optimize revenue in the form of staking rewards associated with proof-of-stake digital assets. The fund will manage the staking and unstaking of multiple tokens and transfer rewards to its investors.
Grayscale is known for its spot Bitcoin ETF, which gives people exposure to cryptocurrencies without having to buy them on their own. Approved and regulated by the U.S. Securities and Exchange Commission (SEC), the ETF has been trading since January. Despite losing billions of dollars, it remains the largest in terms of assets under management. When ranked by trading volume, Grayscale ranks second after BlackRock’s spot Bitcoin ETF.
In their statement, Grayscale outlined how GDIF will work. Investments in GDIF have not been and will not be registered under the U.S. Securities Act of 1933 or any state or other securities laws. Additionally, the fund will not be registered as an investment company under the U.S. Investment Company Act of 1940 and will not be required to comply with certain restrictions and requirements under the Investment Company Act. As a result, investors will not benefit from the protections provided by the Investment Company Act.
*This is not investment advice.
