Crypto-focused investment platform Grayscale Investments has made its first actively managed investment strategy available through iCapital.
The strategy allocates capital across a curated set of proof-of-stake protocols. Staking involves a process through which investors help validate blockchain network transactions by committing a certain amount of their tokens to the network. In exchange, they earn “staking rewards” from transaction fees.
Grayscale’s new strategy features quarterly distributions to investors in an attempt to combine current income with long-term capital appreciation. The company did not disclose the exact type of investment vehicle it is using for the strategy.
Its website lists 32 private funds, including Grayscale Bitcoin Cash Trust, Grayscale Chainlink Trust, Grayscale Dogecoin Trust and Grayscale Litecoin Trust, among others. In addition, the company’s website has a section dedicated to the Grayscale Dynamic Income Fund (GDIF), which seems to closely fit the description of the strategy now available through iCapital Marketplace. The fund, launched in March of last year, invests in digital infrastructure assets, stakes tokens for rewards in the form of additional tokens and converts the reward tokens into cash on a weekly basis.
The fund requires accredited investor or qualified purchaser status to participate.
“Expanding access through iCapital represents a meaningful step in bringing actively managed crypto income strategies into the workflows that financial professionals trust,” said John Hoffman, Grayscale’s head of partnerships and distribution, in a statement. “By delivering exposure to staking through the iCapital Marketplace, Grayscale is providing an opportunity for advisors to offer access to this prospective source of income to their clients.”
Earlier this year, crypto asset manager Bitwise made its active strategies available on iCapital Marketplace, marking iCapital’s first foray into crypto assets. The Bitwise strategy focuses on alpha opportunities in the crypto space.
In addition to its private funds, Grayscale is a major player in the Bitcoin ETF space, with about two dozen vehicles tracking Bitcoin and Ethereum performance.
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