How Accredited Investors and Family Offices Can Benefit from Crypto Staking
Today, new financial opportunities are arising more quickly than ever before, prompting accredited investors and family offices to seek innovative methods to grow and protect their wealth. As cryptocurrency gains mainstream acceptance, investors are increasingly recognizing its potential to diversify their portfolios. According to BNY Mellon Wealth Management, 39% of family offices are either currently invested in crypto or interested in investing.
One opportunity that stands out is crypto staking, whereby investors lock up their digital assets for a given period of time to support blockchain networks to obtain passive growth on their assets in the form of additional crypto rewards. Crypto staking has unfortunately received scrutiny over the past few years, with the SEC bringing lawsuits against major crypto businesses such as Kraken and Coinbase for offering staking as a service for their users.
At CoinList, we’ve created a unique and compliant solution for crypto staking by launching a family of funds that do the actual staking. Accredited investors in the United States are able to earn rewards through investment in our funds whose strategy is to stake digital assets.
Below are some ways staking crypto with CoinList is advantageous for accredited investors in the United States.
Operational Expertise
Staking cryptocurrencies individually can be a complex and risky process involving wallets, validators, unlocking periods, and potential penalties. By staking through CoinList, you can benefit from our expertise and infrastructure, minimizing security risks associated with self-staking.
Here are some ways we reduce these risks:
- We stake our funds with institutional-grade custodians.
- We secure our funds in cold wallets, reducing exposure to cyber attacks and other malicious actors.
- We require multiple approvals for every transfer.
Diversification
By incorporating staking into an investment portfolio, you can access a new class of assets that offer potential for passive growth of digital assets, and can help spread risk across both traditional and digital assets.
Within our family of funds, we offer multiple staking opportunities, reducing the risk of relying on a single staking asset or platform.
Taxes
Our family of funds are structured for tax efficiency, but it is essential to consult with your tax advisor for specific guidance regarding your individual situation.
Our staking funds currently support Mina (MINA), Solana (SOL), Near (NEAR), Ethereum (ETH), and Sui (SUI), with more assets to come in the near future. We are able to add assets upon request from accredited investors, as long as the assets are PoS tokens that align with our service providers.
Legal Notice
This blog post is being distributed by Amalgamated Token Services Inc., dba “CoinList,” or one of its subsidiaries. This blog post and use of the CoinList website is subject to certain disclosures, restrictions and risks, available here.
Nothing herein should be construed as investment, legal or technical advice; consult your own advisors. CoinList and its employees, officers, directors, and affiliates may have interests in assets and/or projects featured in this blog post.