Grayscale Launches Avalanche-Based Trust, Expanding Product Line

Grayscale Investments, a leading digital asset manager, has unveiled its latest offering: a closed-end fund based on Avalanche (AVAX). This new trust is part of Grayscale's ongoing efforts to provide innovative investment opportunities, particularly in the rapidly evolving space of tokenizing real-world assets (RWAs).

Avalanche's role in advancing the tokenization of RWAs is central to this product, which is available to both individual and institutional accredited investors. Like other Grayscale trusts, the subscription and redemption process for this fund will require an application to the company. While Grayscale aims to list the fund on the secondary market, the firm has noted that there is no guarantee of success in this endeavor.

This Avalanche-based trust joins Grayscale’s diverse lineup of products, which already includes trusts focused on MakerDAO, Bittensor, Sui, and AI-centric token baskets. The addition of Avalanche further enhances the firm’s offerings for investors seeking exposure to innovative blockchain ecosystems.

Avalanche, with a market capitalization of $10.07 billion, currently ranks 14th among cryptocurrencies, according to CoinGecko. The growing interest in Avalanche is further evidenced by Franklin Templeton’s recent launch of the tokenized U.S. Government Money Fund (FOBXX) on the Avalanche blockchain. This move is seen as a step forward in integrating traditional finance (TradFi) into the decentralized finance (DeFi) space.

Franklin Templeton had previously launched the FOBXX structure on the Arbitrum network, and it is also available on Stellar and Polygon. The initiative, which began in 2021, made FOBXX the first U.S.-registered fund to utilize public blockchain for transaction processing and share ownership recording.

With an AUM of $424.86 million, the FOBXX fund ranks second only to BlackRock’s USD Institutional Digital Liquidity fund (BUIDL), which boasts $502.7 million in assets under management, according to rwa.xyz. $AVAX

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