Valkyrie Launches an Algorand Trust

The fund will offer exposure to ALGO and a 4%-6% staking yield.

AccessTimeIconJul 14, 2021 at 2:17 p.m. UTC
Updated May 9, 2023 at 3:21 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 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. 

  • Staking Is 'Definitely a Positive' for the Spot Ether ETF Narrative, Analyst Says
    10:14
    Staking Is 'Definitely a Positive' for the Spot Ether ETF Narrative, Analyst Says
  • Tax Expert Breaks Down the Crypto Tax Basics for Beginners
    06:50
    Tax Expert Breaks Down the Crypto Tax Basics for Beginners
  • German Finance Heavyweights Develop Fully-Insured Crypto Staking Offering
    13:53
    German Finance Heavyweights Develop Fully-Insured Crypto Staking Offering
  • Seen at Consensus 2023: An Alpaca Steals the Spotlight
    01:58
    Seen at Consensus 2023: An Alpaca Steals the Spotlight
  • While Valkyrie follows Osprey Funds in offering an Algorand trust, it’s the only asset manager that offers staking within the trust, McClurg said. In April, both Valkyrie and Osprey launched Polkadot funds.  

    “We will have a few other trusts in the future that do proof-of-stake staking,” McClurg said, adding:

    “We have to make sure that the process in which we stake doesn’t violate any type of grantor trust rules. … We’ve figured everything out, and now we just have to implement it from the technology side, which that’s why I say it’s probably another 30 or 60 days before we begin staking.”

    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.

    Disclosure

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

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies 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 with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    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.