TLDRBitwise launched a new Avalanche-focused fund on April 15 to expand its crypto product lineup.CIO Matt Hougan said Avalanche offers differentiated exposure within the Layer 1 blockchain market.Hougan explained that Avalanche allows institutions to launch customizable blockchains with their own rules and validators.He linked the AVAX ETF thesis to long-term growth in tokenized assets, stablecoins, and onchain finance.Hougan cited partners including BlackRock, Apollo, Toyota, the State of Wyoming, and FIFA as part of Avalanche’s ecosystem.Bitwise Asset Management has launched an Avalanche-focused fund and outlined its investment rationale. Chief Investment Officer Matt Hougan presented the case in a recent memo. He argued that Avalanche offers differentiated exposure within the Layer 1 market.Hougan said the firm launched its Avalanche fund on April 15 to expand its crypto lineup. He explained that Avalanche approaches blockchain design differently from Ethereum and Solana. He stated that this structural difference supports the case for broader portfolio inclusion.AVAX ETF Thesis Centers on Differentiated Blockchain StructureHougan wrote that Avalanche does not operate as a single shared chain like many rivals. Instead, it allows institutions to launch customizable blockchains with tailored rules and validators. He said this structure supports regulated entities seeking controlled blockchain environments.He stated, “Avalanche is attractive not because it dominates Layer 1, but because it approaches blockchain design differently.” He added that banks and governments may prefer infrastructure without adopting a fully public chain model. He linked this flexibility to long-term growth in tokenized assets and onchain finance.Hougan connected the AVAX ETF thesis to expanding tokenization trends across financial markets. He said tokenized real-world assets on Avalanche have climbed sharply in recent months. He cited activity from partners including BlackRock, Apollo, Toyota, the State of Wyoming, and FIFA.He wrote that Avalanche could capture part of the market if hundreds of trillions of dollars move onchain. He framed this opportunity as tied to institutional blockchain adoption. He maintained that the fund provides targeted exposure to that theme.Ethereum, Solana, XRP, and Avalanche Form Core Layer 1 GroupHougan used the memo to outline Bitwise’s broader Layer 1 allocation strategy. He said the market remains early and fast-moving across competing networks. He argued that predicting a single long-term winner remains difficult.He wrote that the most sensible approach focuses on networks with clear structural differences. He identified Ethereum, Solana, and XRP as core platforms within that group. He added that Avalanche extends that list due to its customizable model.Hougan said Ethereum leads in smart contracts and decentralized applications. He described Solana as optimized for high-speed and low-cost transactions. He included XRP for its focus on payments infrastructure.He explained that Avalanche offers exposure to a different segment of blockchain demand. He said its design supports private and public use cases within one ecosystem. He positioned the Avalanche fund as aligned with that framework.The post Bitwise CIO Backs Avalanche With New AVAX ETF Launch appeared first on Blockonomi.