Avalanche (AVAX) Skyrockets 17% as Grayscale Names Dedicated Trust
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Avalanche (AVAX) has recorded bullish figures as Grayscale Investments, unveiling a dedicated trust for the coin. The Grayscale Avalanche Trust is meant to support investors in diversifying their crypto exposure. According to the firm, investors wishing to gain exposure to AVAX can adopt real-world asset (RWA) tokenization with the trust.
Grayscale's commitment to RWA tokenization
Following the announcement, the Avalanche price briefly skyrocketed by 17% before dropping to its current figures. As of the time of writing, data reveals that AVAX remained up 8.11% and was trading for $24.84.
Tomiwabold OlajideRayhaneh Sharif-Askary, Grayscale’s Head of Product and Research, says naming a dedicated trust highlights Grayscale's commitment to advancing the adoption of RWA tokenization. Sharif-Askary says, “Through its key strategic partnerships and unique, multi-chain structure, Avalanche is playing a pivotal role in the advancement of RWA tokenization.”
This move has positioned Avalanche on the list of assets supported by Grayscale investments. It remains to be seen if this update will be the precursor to a likely AVAX ETF.
The trust, a single-asset crypto investment fund available to eligible creditors, will focus exclusively on the token supporting the Avalanche network. The trust will shield investors from the rigors of buying and storing AVAX directly and act as a security for accredited investors. A management fee of 2.5% will apply to transactions to facilitate this service.
Avalanche's market position and future prospects
The Avalanche community has applauded the positive market sentiment triggered by news of this launch. This sentiment has driven a bullish twist for the coin, given that Avalanche's recent performance has fallen short of expectations.
Godfrey BenjaminIrrespective of its momentarily bullish market performances, Avalanche may use this institutional adoption to drive sustained growth.
Investors will look forward to a sustained bullish performance from Avalanche, with the anticipation that it might regain its previous standing in the crypto ecosystem.
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