In summary
- Grayscale has launched a fund giving investors exposure to Avalanche (AVAX), open to eligible accredited investors.
- The firm has had success with its Bitcoin and Ethereum ETFs, and now offers trusts for several cryptocurrencies, including Bitcoin Cash, Filecoin, Chainlink and Litecoin.
- Avalanche, the 14th largest virtual currency by market capitalization, enables developers to build decentralized applications and tokenize real-world assets.
Cryptocurrency manager Grayscale has launched a fund that gives investors exposure to Avalanche (AVAX).
The firm said Thursday that Grayscale’s Avalanche Trust is now open to eligible accredited investors and will operate like other cryptocurrency funds it offers.
Grayscale is one of 10 asset managers that received the green light from the Securities and Exchange Commission in January to launch a Bitcoin exchange-traded fund (ETF). The firm previously had a fund, GBTC, that gave investors exposure to the largest cryptocurrency, but it operated as a closed-end fund. However, it converted to an ETF this year and has been very popular with investors.
The firm has since done the same with its Ethereum Fund after Ethereum ETFs were approved in the United States. Such ETFs began operating in July. Grayscale has also launched “Mini” versions of its Bitcoin and Ethereum ETFs with comparatively lower fees for investors.
But in addition to ETFs for those two assets, Grayscale also provides investors with exposure to the fast-paced and often complex world of investing in digital currencies and tokens through Trusts for Bitcoin Cash, Filecoin, Chainlink, Litecoin, among other assets.
“Through its leading strategic partnerships and unique multi-chain structure, Avalanche is playing a pivotal role in advancing the tokenization of real-world assets,” said Rayhaneh Sharif-Askary, Head of Product and Research at Grayscale.
AVAX is the 14th largest virtual currency by market capitalization, according to data from CoinGecko. The cryptocurrency network it runs on is designed to allow developers to build decentralized applications (dapps), which aim to improve current platforms by removing middlemen and being more equitable for users and creators.
Developers are also using Avalanche’s network to tokenize assets. Putting real-world assets on the Blockchain so investors can get a piece of it is something traditional finance heavyweights like BlackRock CEO Larry Fink have talked about.
Avalanche has sparked interest on Wall Street. Last Thursday, investment firm Franklin Templeton made its Nasdaq-listed U.S. Government Money OnChain Fund available on the Avalanche Network.
Edited by Andrew Hayward
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