Grayscale revolutionizes investments for millionaires with the new proof-of-stake fund

Grayscale has announced the launch of a new “variable income fund” aimed at investors with a net worth of over $2.2 million, focused on investments in proof-of-stake tokens.

Let’s see below all the details. 

The future of investments: proof-of-stake tokens with Grayscale

As anticipated, Grayscale has announced the imminent launch of a new “dynamic income fund”, focused on investing in proof-of-stake tokens, in a publication released on X.

The company has specified that the fund, identified by the ticker GDIF, will be accessible exclusively to accredited investors with a net worth of at least 2.2 million dollars.

Furthermore, Grayscale has emphasized that GDIF will represent the company’s “first actively managed investment product”. 

The stated goal of the fund will be to maximize returns through staking rewards associated with proof-of-stake digital assets. 

The fund will be responsible for managing the staking and unstaking of a series of tokens, distributing the related rewards to its investors.

While Grayscale continues to expand its range of financial products, its spot ETF on Bitcoin, regulated by the Securities and Exchange Commission, has attracted attention.

Since the beginning of trading in January, the ETF has recorded significant losses in terms of value, despite remaining the largest in terms of assets managed. 

According to The Block Data Dashboard, Grayscale ranks second in trading volume, behind only BlackRock’s Bitcoin spot ETF.

The operational modes of GDIF

In its announcement, Grayscale clarified the functioning of GDIF, stating the following: 

“Interests in GDIF have not been, and will not be, registered under the U.S. Securities Act of 1933 … or any state or other securities law.”

Furthermore, the information disclosed by Grayscale has indicated that the fund “will not be registered as an investment company under the Investment Company Act of 1940 of the United States”. 

Furthermore, it will not be required to adhere to certain restrictions and requirements under the Investment Company Act, and investors will not be granted the protections of the Investment Company Act. 

Grayscale optimistic about the approval of Ethereum ETFs

The legal head of Grayscale remains confident about the possible approval by the United States Securities and Exchange Commission (SEC) for Ethereum (ETH) linked Exchange Traded Funds (ETFs).

According to Craig Salm, Ethereum ETFs “should be approved” and he urges not to be influenced by the negative rumors surrounding the proposed financial products.

Salm adds that the lack of explicit commitment from the SEC on Ethereum ETF requests should not necessarily be considered as a negative sign. 

He explained that the SEC has shown a positive and constructive commitment during the months leading up to the approval of Bitcoin ETFs.

It clarified that the procedures and technical details discussed with the SEC are similar for both Bitcoin ETFs and Ethereum ETFs, with the only difference being that instead of holding Bitcoin, the ETF will hold Ether.

Despite the delay of the SEC in deciding on the approval of the Ethereum ETFs proposed by BlackRock and Grayscale, Salm expresses optimism about the approval process. 

Therefore, not considering the lack of commitment from the regulatory authority as indicative of a negative outcome.

The SEC has recently postponed the decision date on the proposed Ethereum ETFs by Hashdex and Ark 21Shares, moving the deadline from March 31 to May 30, to have more time to evaluate the proposed rules.