By Michael Scott
Asset manager Grayscale Investments unveils news trusts that expose investors to Avalanche (AVAX).
The crypto asset management firm launched a new fund facilitating investors’ exposure to the Avalanche (AVAX). The firm disclosed on Thursday, August 22, that Grayscale Avalanche Trust is open for eligible accredited investors. The firm added that Avalanche Trust will operate similarly to other crypto funds offered within the Grayscale portfolio.
Grayscale Adds Avalanche Trust
Grayscale is among the ten asset managers that secured the Securities and Exchange Commission (SEC) green light to offer the spot Bitcoin exchange-traded fund (ETF) in January.
Previously, the firm operated the Grayscale Bitcoin Trust (GBTC), which exposed investors to the leading crypto. While the product runs as a closed-end fund, it was converted to ETF at the onset of this year. Since then, the GBTC has attracted multiple investors.
Besides Avalanche Trust, the firm had earlier had Grayscale Ethereum Fund before converting it to the spot Ethereum ETFs upon approval by the US SEC. Nonetheless, the spot ETH ETFs would delay trading till July.
Grayscale has since then unveiled the mini versions of Bitcoin and Ethereum ETFs, though they command lower fees for investors.
In addition to the ETFs for the two large capped crypto assets, Grayscale exposes investors to fast-moving products. Notably, the firm offers the opportunity to invest in digital tokens via Trusts. Eligible investors are exposed to various trusts, including Bitcoin Cash, Litecoin, Chainlink, and Filecoin.
The Grayscale’s Rayhaneh Sharif-Askary considers that Avalanche has existing strategic partnerships blended with a unique multi-chain structure and is unique. The product and research head considers Avalanche pivotal in advancing real-world asset (RWA) tokenization.
AVAX ranks 14th largest in the market value of virtual coins, according to CoinGecko data. The network utilizes a unique design, allowing the developers to build decentralized apps (dapps). Such aims to enhance the current platforms by eliminating middlemen while guaranteeing equitability for the users and creators.
The Avalanche network is witnessing uptake from builders in tokenizing assets. The process to put RWA on the blockchain allows investors to get a piece of something that traditional finance executives led by BlackRock chief Larry Fink often evangelize.
Franklin Templeton’s Benji Onboards Avalanche Network
Avalanche is attracting Wall Street interest. Earlier on Thursday, leading investment firm Franklin Templeton announced that it would be availing the OnChain Government Money Fund (FOBXX) listed on Nasdaq on the Avalanche network.
The Wall Street giant confirmed in the official statement that institutional investors can allocate funds via the digital wallets on the Benji Investments platform. Such allows them to retain their wallets running on the Avalanche network upon subject to eligibility.
Onboarding the Benji platform to the Avalanche network constitutes a critical expansion that guarantees access to the tokenized money market fund.
The digital asset head at the Franklin Templeton’s Roger Bayston, indicated that FOBXX involves a digitized fund that allows clients to commit cash into the US government securities and repurchase agreements.
Investors can acquire FOBXX shares for hodling within the digital wallets. Such is now possible using Franklin Templeton’s mobile application dubbed Benji Investments, Bayston added.
Bullish Spell for AVAX?
The news of Franklin onboarding Benji on Avalanche saw AVAX realize an impressive 4.2% rally to exchange hands at $24.44 per CoinGecko data. The 4.2% gain outpaces large-cap coins, such as Ethereum (ETH) and Bitcoin (BTC) daily gains.
While AVAX has dipped 2.5% at press time to change hands at $27.22, CoinGecko data shows the coin is 28.1% up in the past seven days. The upside momentum surpasses the rocket acceleration realized by TRON in the week, up 22.9% to $0.1655, CoinGecko data shows.
Notably, the weekly gain triumphs over Bitcoin’s 7.1% and Ethereum’s 3.6% rise within the same period to $64,143.31 and $2,765.43, respectively. The addition of Avalanche Trust is perhaps the catalyst behind the AVAX weekly surge, surpassing BNB’s 6.8% rise in the past week to $575.66.