The price of AVAX spiked 28.5% as Grayscale Investments and Franklin Templeton released positive updates for the Avalanche ecosystem.
Avalanche (AVAX) has attracted the attention of the broader crypto community as the asset appeared to be at the beginning of a significant trend reversal.
On August 5, the native token of the open-source proof-of-stake blockchain plunged to $17.29, marking its lowest level in nine months. However, things have been moving positively for AVAX ever since, as the asset records a major price uptick.
At press time, AVAX is priced at $25.87 per token, reflecting an increase of 49.62% in just two weeks. Data from CoinMarketCap shows that the price of Avalanche has spiked by 28.5% in the weekly chart and 10.68% over the past week.
Potential Factors Responsible for AVAX Surge
The recent price uptick can be attributed to several positive developments relating to the token, including Grayscale Investments’ launch of Avalanche Trust and Franklin Templeton’s expansion of its money market fund onto the Avalanche blockchain.
Grayscale Introduces Investment Fund for Avalanche
On August 22, popular crypto asset manager Grayscale Investments expanded its offering of crypto investment products by introducing the “Grayscale Avalanche Trust.”
The new investment product aims to give sophisticated investors indirect exposure to the Avalanche ecosystem, especially its native token, AVAX. The fund, which focuses exclusively on Avalanche, is now open for daily subscription.
Crypto enthusiasts expect the fund to potentially lead to the launch of a spot-based exchange-traded fund (ETF) for AVAX. It is common knowledge that Grayscale Investments plans to convert all crypto investment products to spot-based ETFs.
The asset manager has already converted its Bitcoin and Ethereum Trusts to spot ETFs. Notably, the company plans to make a similar move for other crypto investment products, including Grayscale Avalanche Trust.
Franklin Templeton Expands Its Tokenized Money Fund to Avalanche
On the same day, top asset manager Franklin Templeton expanded its on-chain money market fund, the Franklin Onchain U.S. Government Money Fund (FOBXX), to the Avalanche network.
Launched in 2021, the $420 million U.S.-registered mutual fund gives institutional investors access to the asset manager’s blockchain-based record-keeping system.
The fund’s shares are represented by a native token, dubbed BENJI Token, currently available for trading on Polygon and Stellar. Investors can purchase the tokenized shares using Circle’s stablecoin (USDC).
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