Avalanche Soars as Grayscale, Franklin Templeton Launch New Funds
Grayscale Boosts Avalanche with Dedicated Trust
Avalanche (AVAX) witnessed a remarkable price jump after Grayscale Investments announced the creation of a dedicated trust for the cryptocurrency. The new Grayscale Avalanche Trust aims to provide investors with diversified exposure to AVAX, placing a strong emphasis on real-world asset (RWA) tokenization.
Rayhaneh Sharif-Askary, Grayscale’s Head of Product and Research, emphasized that this initiative reinforces the company's commitment to advancing RWA tokenization within the crypto landscape. Following the initial surge, AVAX stabilized with an 11.79% gain, trading at $26.28 at the time of reporting.
The trust operates as a single-asset investment fund tailored exclusively for accredited investors, offering a streamlined alternative to directly purchasing and storing AVAX. Transactions within the trust are subject to a 2.5% management fee, reflecting industry standards for such investment vehicles.
News of the trust's launch has been met with enthusiasm from the Avalanche community, fueling bullish market sentiment. Observers anticipate that increased institutional adoption through vehicles like Grayscale's trust could drive sustained growth for AVAX, despite the cryptocurrency's recent periods of underperformance.
Franklin Templeton Expands Blockchain Fund to Avalanche
Franklin Templeton has expanded its Nasdaq-listed OnChain U.S. Government Money Fund (FOBXX) to the Avalanche blockchain, broadening access for institutional investors. This integration allows eligible investors to allocate funds through digital wallets on the Benji Investments platform, maintaining these wallets on the Avalanche network.
The FOBXX fund, a digitized investment vehicle, provides an opportunity to invest in U.S. government securities, cash, and repurchase agreements, now with the added flexibility of blockchain technology.
Peer-to-peer trading of FOBXX shares has been enabled by Franklin Templeton, empowering holders of the BENJI token to transfer shares directly on a public blockchain. Initially launched on the Stellar blockchain, the fund's move to Avalanche underscores the firm's commitment to expanding its digital asset offerings.
Since 2018, Franklin Templeton has been pushing into blockchain technology, starting with the digitization of money market fund shares on Stellar. The firm’s blockchain initiatives also include successful spot Bitcoin and Ethereum ETFs, marking its growing influence in the digital finance landscape.
This article has been refined and enhanced by ChatGPT.
