Valkyrie, Osprey Beat Grayscale to Market With Polkadot DOT Trust

Valkyrie is charging a 2% management fee on the fund, just under Osprey’s 2.5%. Are DOT funds the new BTC funds for buttoned-up investors?

AccessTimeIconApr 30, 2021 at 9:15 p.m. UTC
Updated May 9, 2023 at 3:18 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Valkyrie Digital Assets has launched a Polkadot fund with a twist.

The investment vehicle will give clients access to the appreciation of the underlying DOT tokens but also the 8% yield from Valkyrie staking the asset through Coinbase Custody.

Valkyrie follows Osprey Funds, which launched the first DOT fund earlier this week but without the staking perks. Grayscale Investments, the world’s largest digital asset manager, which is owned by CoinDesk parent company Digital Currency Group, has incorporated a DOT trust but has yet to launch it. 

“Polkadot has the promise of being a faster network, with lower gas fees that can support a lot of different assets,” Steven McClurg, Valkyrie’s chief investment officer, said in an interview. “It is more of a speculative play on the future growth and future usability of that protocol.” 

Many of the same institutions that are interested in Osprey’s bitcoin fund are also interested in the DOT fund, Osprey CEO Greg King said. 

“It’s pretty compelling as a potential layer one platform that facilitates a multichain universe,” King said.

Valkyrie is charging a 2% management fee on the fund, coming just under Osprey’s 2.5%. Both firms have decided to waive fees for the first two years. Osprey currently manages $10.6 million in its Polkadot fund, and Valkyrie is launching with $10 million assets under management. 

Coinbase is the custodian for the Valkyrie fund, Cohen & Company handles audit and tax, Theorem Fund Services acts as the fund administrator and Chapman and Cutler LLP is the legal counsel. 

On the Osprey fund, Coinbase is the custodian, Theorem is the fund administrator, Murphy & McGonigle are outside counsel and Morgan Lewis handles tax issues.

DOT is currently the ninth-largest cryptocurrency with a market capitalization of $38 billion, according to CoinDesk data.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.