The 11th crypto by value, Avalanche, saw double-digit gains on Thursday. Though the leg-up emerged as the broad crypto market recorded bullish more, AVAX received a further boost after Valkyrie, a digital asset manager, introduced an investment trust committed to the altcoin.
Avalanche gained 14% within a couple of hours to explore its 1-week peak at $68.36. The upward actions emerged after Valkyrie issued the announcement that might attract more institutional investors into the AVAX blockchain. The asset manager commented on the increasing institutional interest in the alternative token.
The improved mood in the overall crypto space also contributed to AVAX’s upsurges. The market saw positive sentiment as Fed Reserve kept a somewhat dovish stance amid the latest rate hike. The global cryptocurrency market cap added nearly $100 billion over the last 24 hours.
Valkyrie Launches AVAX Trust; Price Surges Imminent?
Valkyrie is a renowned digital asset manager. It introduced a new trust during Wednesday’s press release. The new trust will ensure institutional players gain exposure to the alt without direct buys. Valkyrie added that only qualified investors would access the investment trust. Also, the asset manager cheered Avalanche for its nature as the fastest platform within the blockchain space.
Meanwhile, Valkyrie plans to star AVAX staking via the trust. The move cites a surging interest in PoS platforms by institutional investors, likely prompted by Ethereum’s plans to shift to the consensus this year.
Proof-of-State (PoS) Networks in Demand
Ethereum’s anticipated migration to a PoS mechanism triggered interest in other Proof-of-Stake tokens, including ADA, SOL, and AVAX. Nevertheless, market participants perceive Avalanche as the top competitor to ETH.
Institutional investors seem interested in PoS coins as an alternative to BTC. The mechanism’s somewhat lower energy needs, compared to PoW assets, also makes Proof-of-Stake more preferred by environmentally mindful watchdogs.
Digital fund managers like 21Shares, Grayscale, and CoinShares have launched PoS-related products in 2022, confirming the increasing demand by institutional customers.
Crypto assets saw remarkable actions (on Thursday) as all assets in the top 100 crypto-list traded in the green. It may be interesting to watch up-and-coming price reactions. Stay around for up-to-date market updates.