Grayscale Dynamic Income Fund
Overview
Grayscale Dynamic Income Fund (GDIF) seeks to (i) optimize income, in the form of staking rewards associated with proof-of-stake digital assets with (ii) capital appreciation from such investments as a secondary goal.
Fund Strategy & Process
Fund Performance & Holdings
Net performance includes the deduction of fees and expenses. This fund is new and has limited operating history. Long term performance may be higher or lower than what is shown. Past performance is no guarantee of future results. The fund was launched in October 2023 with an initial investment from Grayscale Investments LLC. Performance as of 9/30/2024.
As of 4/16/2024, the Fund has a new Porfolio Manager. Prior to this date, investment performance was achieved by the former Porfolio Manager. The Fund will continue to be managed in the same manner with no changes made to the advisory entity, investment program, or fees.
Holdings subject to change at sponsor's discretion. Percentages may not equal 100% due to rounding. Holdings as of 9/30/2024.
What is staking?
Staking is a process in which investors participate in the validation of blockchain network transactions and earn “staking rewards” from transaction fees in exchange for their services. To stake, investors commit a certain amount of their tokens to the network.
Staking is a critical part of the Proof of Stake consensus mechanism1 and plays a significant role in maintaining the integrity, and functionality of a network.
What are the advantages of staking?
In return for securing the network through the validation of transactions, investors earn staking rewards. Staking rewards are paid in each blockchain’s native token.
For GDIF, staking rewards aim to be converted to USD weekly and aim to be paid quarterly to investors.
Why invest in GDIF?
- Thorough analysis for selecting proof-of-stake tokens and optimizing for staking rewards.
- Grayscale manages the complexity of staking and unstaking multiple tokens as each token has its own individual timelines and requirements to be staked and unstaked.
Eligibility Requirements
GDIF is only available to eligible Accredited Investors who are also Qualified Purchasers (any individual, trust, or family-owned company with investments2 equal to or greater than $5 million, an investment manager with $25 million or more under management, a company holding $25 million or more in investments, or a qualified institutional buyer under Rule 144A).
Resources
1 Blockchains are decentralized, meaning they lack centralized governing authorities, and proof of stake is a method used to guarantee that data saved on the network is valid.
2 Investments include: securities, real estate held for investment purposes, physical commodities or commodity interests held for investment purposes, financial contracts entered into for investment purposes, and cash or cash equivalents held for investment purposes.