Valkyrie Launches an Algorand Trust
The fund will offer exposure to ALGO and a 4%-6% staking yield.
Valkyrie Digital Assets is offering a second proof-of-stake trust giving clients access to the appreciation of the underlying asset as well as the yield from staking.
The digital asset manager launchedhttps://trusts.valkyrieinvest.com/algorand-trust its first Algorand Trust on Wednesday. Valkyrie also plans to stake the asset through Coinbase Custody, allowing it to offer a 4%-6% yield on top of exposure to ALGO within a few months, Steven McClurg, Valkyrie’s chief investment officer, said in an interview.
“We will have a few other trusts in the future that do proof-of-stake staking,” McClurg said, adding:
Shares of the Aglorand Trust can be redeemed in seven days, slower than the company’s 24-hour redemption process for its Bitcoin Trust and faster than the 30 days needed for its Polkadot Trust.
Coinbase is the custodian for the Algorand fund, Cohen & Company handles audit and tax, Theorem Fund Services acts as the fund administrator and Chapman and Cutler LLP is the legal counsel. Valkyrie is charging a 2% fee on the fund.