Valkyrie Digital Assets is offering its third closed-end crypto fund that includes staking in addition to exposure to the underlying asset.
The digital asset manager has launched a trust called Dash, a cryptocurrency designed for payments. It launched the Algorand Trust and a Polkadot Trust earlier this year.
“This should be our second trust that we launched after Bitcoin,” said Steven McClurg, Valkyrie’s chief investment officer. “The hardest part was staking out. There are many tax considerations that we must go through when starting any type of investment within a trust. “
Valkyrie did not disclose the trust’s return, but added that it would be traded on over-the-counter markets where it would be available to retail investors.
“Personally, I am very pleased to see a product that I can more easily point out to institutions and individuals [to] looking for a retirement account, ”said Ryan Taylor, CEO of Dash Core Group, the company that developed the Dash coin.
The fund will allow institutions to get involved in the staking dash without having to operate a master node, which would require them to hold 1,000 dash. That would cost about $ 163,000 at current prices, compared to the minimum investment of $ 25,000 for the Valkyrie Trust.
Taylor also told CoinDesk that he hopes to see a Dash Exchange Traded Fund (ETF) one day or that Valkyries Trust will be converted into an ETF. McClurg added that Valkyrie would begin testing ETF conversion for its non-bitcoin trusts after a bitcoin ETF was approved in the US and the other digital assets reached a market capitalization that was targeted by the US Securities and Exchange Commission according to liquidity for these assets.
BitGo is the custodian of the Dash Fund, Cohen & Co. handles auditing and taxation, Theorem Fund Services is the fund administrator, and Chapman & Cutler LLP is the legal advisor. Valkyrie charges a 2% fee on the fund.
CORRECTION (August 4th, 14:30 UTC): BitGo is the custodian for the Dash fund, not Coinbase.