Grayscale has revealed plans to introduce a groundbreaking investment vehicle termed the "dynamic income fund," targeting accredited investors with a minimum net worth of $2.2 million. This fund, known as GDIF, represents Grayscale's inaugural actively managed investment offering, signaling a strategic shift in its portfolio management approach.

The primary focus of GDIF will be on investing in proof-of-stake tokens, aiming to maximize income derived from staking rewards associated with digital assets operating on proof-of-stake consensus mechanisms. Grayscale's management of GDIF will involve the strategic staking and unstaking of various tokens, with resultant rewards distributed to investors.

Unlike Grayscale's spot bitcoin ETF, which operates under the regulatory purview of the Securities and Exchange Commission (SEC), GDIF will not fall under the jurisdiction of securities laws. Grayscale has clarified in its disclosures that interests in GDIF will not be registered under the U.S. Securities Act of 1933 or any state securities laws.

Additionally, the fund will not be classified as an investment company under the U.S. Investment Company Act of 1940, exempting it from certain regulatory restrictions and requirements. Consequently, investors participating in GDIF will not benefit from the protections afforded by the Investment Company Act.