Grayscale Unveils Avalanche Trust Fund as AVAX Shows Signs of Recovery

Key Insights:

• Grayscale’s Avalanche Trust provides qualified investors exposure to AVAX and its growth in real-world asset tokenization.
• Avalanche’s focus on scalable blockchain and RWA tokenization drives Grayscale’s confidence in launching the new AVAX Trust.
• AVAX token shows a 45% recovery amid Grayscale’s trust launch and excitement over reduced future token unlock events.

Grayscale Investments, a crypto asset manager, announced the launch of a new investment fund focused on Avalanche’s native token, AVAX. The Grayscale Avalanche Trust, introduced on August 22, provides investors with the opportunity to gain exposure to Avalanche, a layer-1 blockchain known for its multi-chain structure and focus on real-world asset (RWA) tokenization.

This new fund joins Grayscale’s expanding suite of over 20 crypto investment products, which include other single-asset funds such as the Grayscale Bitcoin Trust and Grayscale Ethereum Trust. According to Grayscale, the Avalanche Trust is designed to help investors participate in the development of decentralized networks, particularly those focused on advancing RWA tokenization.

Grayscale Expands Offerings with AVAX Trust

The Grayscale Avalanche Trust marks the company’s continued expansion into the crypto space. Avalanche is a layer-1 blockchain that emphasizes scalability, network security, and decentralization, providing a platform for RWA tokenization. This involves transforming real-world assets, like real estate and art, into digital tokens that can be traded on the blockchain.

The firm emphasized that the new trust will allow qualified investors to tap into Avalanche’s growth, particularly in areas where blockchain technology intersects with real-world assets. “Through its key strategic partnerships and unique, multi-chain structure, Avalanche is playing a pivotal role in the advancement of RWA tokenization,” said Rayhaneh Sharif-Askary, Grayscale’s head of product and research. The trust offers investors a way to engage with Avalanche’s ecosystem, which is gaining traction due to its focus on real-world applications.

Growing Interest in Blockchain and Crypto Investment Products

Grayscale has been expanding its offerings rapidly in recent months, with the Avalanche Trust being the latest addition. The company continues to attract institutional and individual investors alike by offering access to a wide array of cryptocurrency products. Earlier in August, Grayscale introduced a trust for MakerDAO’s MKR token and additional funds for Bittensor and Sui, focusing on their respective native tokens.

Grayscale has positioned itself as one of the most prominent firms in the crypto space, with more than $25 billion in assets under management. Its Bitcoin and Ethereum trusts, launched in the early days of the company, have since become publicly traded exchange-traded funds (ETFs) following regulatory approval. The new Avalanche Trust aligns with Grayscale’s strategy of offering exposure to high-potential blockchain projects.

The Avalanche Trust is part of a broader trend in the investment community toward publicly tradable products linked to the crypto ecosystem. Interest in these products has surged since the Securities and Exchange Commission (SEC) approved the first Bitcoin ETFs for U.S. trading earlier this year. 

Dave LaValle, Grayscale’s global head of ETFs, predicted in an August 12 webinar that the market for crypto-based ETFs would likely grow, encompassing both single-asset products and diversified indexes.

AVAX Shows Early Signs of Recovery

The launch of the Avalanche Trust comes at a time when AVAX, the native token of Avalanche, is showing signs of a recovery after months of decline. On August 5, AVAX hit its lowest price in nine months, trading at $17.29. However, in the past two weeks, the token has rallied by more than 45%, reaching $25.25.

Positive news around Avalanche, including Grayscale’s new trust, may have contributed to this rebound. Additionally, AVAX investors have been closely watching the token unlock schedule, which has been cited as a potential source of selling pressure. The unlock schedule will ease considerably after 2024, raising hopes that this could reduce downward pressure on the token’s price, allowing for further gains in the future.

While the trust offers exposure to AVAX, it is not exchange-traded and is available only to qualified investors. Nevertheless, the introduction of this fund indicates growing confidence in Avalanche’s potential, especially in the field of RWA tokenization.

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