AVAX Jumps 14% after Valkyrie Launches Avalanche Trust for Investors

UTC by Bhushan Akolkar · 2 min read
AVAX Jumps 14% after Valkyrie Launches Avalanche Trust for Investors
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The Valkyrie Avalanche Trust (AVAX) will provide an insurable, cost-effective way for investors to participate in the Avalanche ecosystem.

On Wednesday, May 4, crypto investment firm Valkyrie launched its latest investment vehicle, the Valkyrie Avalanche Trust (VAVAX). This provides an easy gateway for traditional investors looking to gain exposure to the Avalanche ecosystem.

Furthermore, VAVAX is the first investment vehicle from Valkyrie that will solely invest in the native crypto Avalanche (AVAX). The goal is to provide an insurable, cost-effective manner to investors accessing the Avalanche ecosystem. Speaking of the development, Valkyrie Investments CIO Steven McClurg said:

“AVAX is growing rapidly in terms of adoption, largely as a result of its blazing fast transaction speeds. By launching this trust, we are able to give qualified investors exposure to a protocol that they have been increasingly asking about as DeFi projects, NFT platforms, and many other projects have increasingly begun to build on the Avalanche blockchain.”

Sources familiar with the matter said that the VAVAX Trust has already secured $25 million. The launch of VAVAX comes just within two weeks of Valkyrie announcing “Multi-Coin Trust” which invests in several base-layer tokens, including AVAX.

As per the fact sheet, the newly launched Avalanche Trust (VAVAX) offers daily redemptions for shares. But the Multi-Coin Trust has a monthly redemption schedule.

AVAX Price Shoots 14% after the News

In the last 24 hours, the Avalanche (AVAX) crypto has gained 14% moving all the way to $69. The news of Valkyrie’s VAVAX Trust launch brought renewed optimism among investors. Another strong reason behind the rally is the upside in the broader crypto market after the Fed meeting.

Avalanche is emerging as one of the very strong Layer-1 competitors to Ethereum. It allows developers to build decentralized applications (DApps). Besides, it is also a low-cost Ethereum alternative with higher transaction capabilities. Speaking of the development, John Wu, President of Ava Labs said:

“Avalanche is pioneering the movement toward mass adoption of blockchains with low fees, near-instant transaction finality, and an eco-friendly platform. With the launch of the Avalanche Valkyrie Trust, institutions will have another reliable avenue to tap into the innovation happening across the community.”

Over the last year, Avalanche (AVAX) has gained solid traction and emerged as one of the most-preferred blockchains for decentralized finance (DeFi) protocols.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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