Grayscale to Launch Avalanche-Based Trust

Digital asset manager Grayscale Investments has announced the launch of a closed-end fund based on Avalanche (AVAX).

We are proud to announce the creation of a new single-asset crypto investment fund, available through private placement: Grayscale Avalanche Trust $AVAX.

Available to eligible accredited investors.

Read the press release: https://t.co/XwKfjPD9Tw pic.twitter.com/HdzlNfwkQ8

— Grayscale (@Grayscale) August 22, 2024

Grayscale noted that Avalanche plays a key role in advancing the tokenization of RWA.

The product is intended for individual and institutional accredited investors. It operates similarly to other trusts, requiring an application to the company for subscription/redemption.

Grayscale has pledged to make efforts to list the fund on the secondary market. However, the company does not guarantee a positive outcome.

The new instrument will continue the expansion of the product line. Previously, it included trusts based on MakerDAO, Bittensor and Sui, as well as token baskets focused on AI.

According to CoinGecko, Avalanche’s market capitalization is $10.07 billion, ranking it 14th among cryptocurrencies.

On August 22, it was also reported that Franklin Templeton launched a tokenized U.S. Government Money Fund (FOBXX) on the Avalanche blockchain. This was reported by Decrypt.

Earlier, the asset manager and issuer of spot Bitcoin and Ethereum ETF launched a structure on the Arbitrum network. It is also available on Stellar and Polygon.

The initiative aims to accelerate the integration of TradFi into DeFi.  

In 2021, FOBXX became the first U.S.-registered fund to use a public blockchain for transaction processing and share ownership accounting.

According to rwa.xyz, the AUM of the structure is $424.86 million, ranking second after BlackRock USD Institutional Digital Liquidity (BUIDL) with $502.7 million.

Franklin Templeton has filed an S-1 application for a “dual” crypto-ETF. At the end of July, Hashdex submitted a similar document.