Grayscale Launches AVAX Token Investment Fund

Author: Alex O’Donnell, CoinTelegraph; Compiler: Wuzhu, Golden Finance

According to an announcement on August 22, Asset management company Grayscale Investments has launched a new investment fund for Avalanche’s native token AVAX.

Grayscale said that Grayscale Avalanche Trust “provides investors with exposure to Avalanche (AVAX), a three-chain smart contract platform designed to optimize scalability, network security, and decentralization simultaneously.”

Avalanche is a layer 1 blockchain network focused on facilitating the tokenization of real-world assets (RWA), including the conversion of tangible assets (such as real estate, commodities or artworks) into digital on-chain tokens. On August 22, Franklin Templeton expanded its blockchain-integrated money market fund to Avalanche.

Grayscale’s Avalanche Trust allows investors to participate in Avalanche’s “RWA tokenization advancement,” including “through its key strategic partnerships and unique multi-chain structure,” Rayhaneh Sharif-Askary, head of product and research at Grayscale, said in a statement.

Grayscale has more than 20 investment products. Source: Grayscale

The fund, which is not exchange-traded and is open only to accredited investors, is the latest addition to Grayscale’s portfolio of more than 20 crypto investment products. On August 13, Grayscale launched a trust fund to invest in MakerDAO’s MKR token. On August 7, Grayscale launched two additional trust funds to invest in Bittensor and Sui’s native protocol tokens.

Grayscale is the world’s largest cryptocurrency fund manager, with more than $25 billion in assets under management. The company is best known for its Bitcoin and Ethereum exchange-traded funds (ETFs), including the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE).

Grayscale also operates private single-asset funds for other protocol tokens, such as Basic Attention Token (BAT) and Chainlink.

During an Aug. 12 webinar, Grayscale’s global head of ETFs, Dave LaValle, predicted that the cryptocurrency ETF market will expand to include new types of digital assets and diversified crypto indexes.

“We’re going to see more single-asset products and certainly some index-based and diversified products,” LaValle said.