Crypto asset manager Grayscale Investments has launched the Grayscale Avalanche Trust, adding to its growing suite of cryptocurrency investment products.
Grayscale announced on Aug. 22 the establishment of a new cryptocurrency trust after the recently provided trusts for Bittensor and Sui. The latest one is now part of Grayscale’s over 20 crypto assets in its investment products, including the major ones such as Solana, Litecoin, and Chainlink.
The Avalanche Trust enables qualified investors to buy into AVAX, the cryptocurrency that runs on the Avalanche blockchain. Avalanche employs a three-chain model that aims to achieve a balance between scalability, security, and decentralization. By leveraging strategic partnerships, the platform has successfully penetrated the burgeoning real-world asset (RWA) tokenization market.
Role of Avalanche in RWA tokenization
Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, said:
The launch of Grayscale Avalanche Trust highlights Grayscale’s ongoing commitment to providing investors with innovative opportunities to access exciting developments in the crypto ecosystem. Through its key strategic partnerships and unique, multi-chain structure, Avalanche is playing a pivotal role in the advancement of RWA tokenization.
Grayscale’s single-asset trust Avalanche is now available for daily subscription by eligible accredited investors. Nevertheless, it is not guaranteed to be accepted on the secondary market.
The trust’s shares may trade significant premiums or discounts to the underlying AVAX value. Grayscale pointed out that the regulatory environment is unclear. Therefore, investors should be ready to hold the shares for an indefinite period.
However, this launch is part of Grayscale’s global expansion of crypto investment vehicles on the back of institutional interest. The firm has become a major player in providing regulated exposure to digital assets. Especially in its major Bitcoin trust, which has been facing difficulties converting to an ETF.
Grayscale intends to provide investors with alternative means of gaining exposure to new blockchain networks and use-cases in the evolving cryptocurrency market. Nevertheless, the Avalanche trust is tapping into growing interest in scalable as well as enterprise adoption focused platforms.
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