Grayscale's new trust aims to enhance investor access to Avalanche's AVAX token.
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Key Takeaways
- Grayscale's Avalanche Trust offers exposure to the AVAX token, enhancing its crypto product range.
- The AVAX token is crucial for transaction fees and blockchain security on Avalanche.
Leading asset manager Grayscale Investments announced today it is launching the Grayscale Avalanche Trust, a new investment product aimed at providing investors with exposure to Avalanche (AVAX), a popular blockchain platform known for its scalability, security, and decentralization.
Grayscale said the trust is part of the company’s strategy of providing investors with diverse crypto exposure.
“The launch of Grayscale Avalanche Trust highlights Grayscale’s ongoing commitment to providing investors with innovative opportunities to access exciting developments in the crypto ecosystem,” said Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research.
The new trust, operating similarly to Grayscale’s existing funds, marks a major addition to Grayscale’s growing list of over 20 crypto investment products. At press time, the Grayscale Avalanche Trust shares are trading at $11.75 and it charges a 2.5% management fee.
Grayscale also offers trusts tied to various crypto assets like Solana, Stellar, Chainlink, Near, and Litecoin. The firm just launched new funds that invest in Sui and Bittensor earlier this month.
The introduction of the Grayscale Avalanche Trust comes at a time when institutions like JPMorgan and City are adopting Avalanche’s customizable platform, particularly through its specialized subnets, Avalanche shared in a blog post.
Avalanche has positioned itself as a leading platform for RWA tokenization by collaborating with various institutions and companies, according to Grayscale.
“Through its key strategic partnerships and unique, multi-chain structure, Avalanche is playing a pivotal role in the advancement of RWA tokenization,” Sharif-Askary noted.
According to separate announcement from Franklin Templeton on Thursday, the asset management firm has expanded its Franklin OnChain US Government Money Fund to the Avalanche network.
The move marks the first instance of an on-chain money market fund on Avalanche. Institutional investors can now access Franklin Templeton’s record-keeping system, Benji Investments, through the Avalanche network, provided they meet certain eligibility criteria.
Avalanche’s AVA token surged 5% to nearly $25 following positive news. At the time of writing, AVAX is trading at $24.6, up 6% in the last 24 hours, CoinGecko’s data shows.
