VDASH is a trust, it offers a highly secure way to invest in Dash. It is the trust itself that holds the crypto assets, through a qualified third-party custodian. This means there’s no need for investors to worry about keys, wallets, or storage – all of which are professionally managed by Valkyrie – thus making it easier for investors and institutions to add Dash exposure to their portfolios in a secure manner.
Next, Valkyrie assumes tax preparation responsibility, providing investors with annual tax statements on their capital gains and masternode income. This makes tax preparation significantly easier for investors compared to a self-hosted masternode. There are also benefits for users with specific investment goals or situations. For example, investments in VDASH can be accessed through an Individual Retirement Account (IRA). While it is possible to create a self-directed IRA to invest directly in Dash, there are significant administrative burdens of self-directed IRAs that might make them unappealing for many investors.
In addition, beneficiaries can be named, making the transfer of assets to beneficiaries more straightforward. New York residents, who are subject to the state’s restrictive cryptocurrency regulations, can gain exposure to Dash for the first time.
Finally, Valkyrie provides investors with quarterly statements, enabling proof of ownership for an investor’s Dash balance. This is beneficial for investors wishing to prove balances to third parties when, for example, applying for a mortgage or qualifying for other forms of credit. To invest in VDASH, certain requirements must be met. As previously stated, there is a minimum $25,000 investment. Contributions to the trust can be made via Dash or U.S. bank wires. Interested participants must also be Accredited Investors. There are several ways to qualify as an Accredited Investor, as defined by the SEC. Accredited Investors must meet at least one requirement regarding their income, net worth, professional experience, or institutional structure (in the instance of institutions).