Grayscale Rolls Out New Fund for Avalanche's Native Token AVAX

Grayscale Investments has just rolled out a new fund for Avalanche's native token, AVAX, adding to its expanding lineup of digital asset investment products.

Grayscale Investments has just rolled out a new fund for Avalanche’s native token, AVAX, adding to its expanding lineup of digital asset investment products.

The new Grayscale Avalanche Trust gives accredited investors a way to tap into Avalanche, a smart contract platform known for its focus on scalability, security, and its unique three-chain setup.

The introduction of the Avalanche Trust comes at a time of growing interest in publicly tradeable cryptocurrency products. This trend gained momentum in January when the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin ETFs for trading in the U.S.

Grayscale is a key player under Digital Currency Group that has been leading the charge in making digital assets accessible to mainstream investors. The company’s Bitcoin Trust was one of the first to switch to an ETF structure, and just recently, the Grayscale Ethereum Trust (ETHE) also transitioned into an ETF format.

Avalanche is a layer-1 blockchain network that made headlines recently with its real-world asset (RWA) tokenization. This essentially means turning physical assets like real estate or fine art into digital tokens on the blockchain. At the same time, Franklin Templeton is expanding its blockchain-integrated money market fund to the Avalanche network, launching the Avalanche Trust.

“Through its key strategic partnerships and unique, multi-chain structure, Avalanche is playing a pivotal role in the advancement of RWA tokenization,” said Grayscale’s head of product and research, Rayhaneh Sharif-Askary.

This new Avalanche Trust is the latest addition to Grayscale’s growing lineup of over 20 crypto investment products. However, the product is not exchange-traded and is available only to qualified investors. It follows recent launches of other Grayscale trusts, including ones for MakerDAO’s MKR token and native tokens from Bittensor and Sui.

Grayscale, the world’s largest crypto fund manager with over $25 billion in assets under management, also offers private single-asset funds for other tokens like Basic Attention Token (BAT) and Chainlink (LINK).

Dave LaValle, Grayscale’s global head of ETFs, hinted at more growth in the crypto ETF space, with plans for more single-asset products as well as diversified crypto indexes on the horizon. “We’re going to see a number of more single-asset products, and then also certainly some index-based and diversified products,” LaValle noted.