TLDR

• Bitwise 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 Structure

Hougan 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 Group

Hougan 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.

TLDR

• U.S. banking groups asked the Treasury Department to extend comment periods on GENIUS Act stablecoin rule proposals.
• The associations requested at least 60 additional days after the OCC finalizes its supervisory framework.
• Bankers said the related rule proposals depend directly on the OCC’s final approach.
• The letter addressed rulemaking efforts at OFAC, FinCEN, and the FDIC.
• The GENIUS Act aims to establish a national stablecoin oversight framework before 2027.

U.S. banking groups have urged federal regulators to extend comment periods tied to stablecoin rules under the GENIUS Act. They argue that overlapping proposals require more review time before agencies finalize frameworks. The request centers on aligning rulemaking schedules across multiple banking regulators.

Banking Groups Call for More Time on GENIUS Act Rules

Several major bank trade associations submitted a letter to the U.S. Department of the Treasury and the Federal Deposit Insurance Corp. They asked regulators to extend three proposed rule comment periods linked to the GENIUS Act. They requested at least 60 additional days after the Office of the Comptroller of the Currency completes its framework.

The American Bankers Association and the Bank Policy Institute signed the letter with other organizations. They stated that all related proposals remain “directly contingent on the OCC’s final framework.” They argued that agencies should allow coordinated review before moving forward.

The Office of the Comptroller of the Currency is drafting standards for supervising stablecoin issuers. Bankers said the OCC’s final approach will shape related rules under development at other agencies. They stressed that agencies should not finalize separate rules without considering the OCC’s decisions.

The letter addressed rulemaking efforts at the Treasury’s Office of Foreign Assets Control and the Financial Crimes Enforcement Network. It also referenced a related proposal at the FDIC. The groups said these efforts together represent a “body of regulatory work of extraordinary scope and complexity.”

Bankers explained that they plan to provide detailed feedback on each proposal. However, they said agencies must first finalize the OCC’s supervisory structure. They wrote that their comments “will necessarily be more comprehensive” with more time.

Coordinated Oversight and Ongoing Stablecoin Debate

The GENIUS Act aims to establish a national framework for stablecoin oversight before 2027. Lawmakers designed the measure to coordinate federal supervision across banking and financial regulators. Agencies have begun drafting rules to meet the law’s timeline.

Federal agencies often extend comment windows for complex rule proposals. Banking groups cited that precedent in their request. They said regulators should synchronize review periods to avoid inconsistent standards.

At the same time, the same banking organizations remain engaged in discussions over the Digital Asset Market Clarity Act. That proposal seeks to define oversight roles for digital asset markets. Disagreements between banks and crypto industry participants have slowed its progress in Congress.

PUSD, a Shariah-compliant stablecoin backed by Gulf currencies, is set to deploy on ADI Chain, a Layer 2 network focused on institutional settlement in the Middle East.

According to an announcement shared with Cointelegraph, the stablecoin has about $2.3 billion in circulation and is backed 1:1 by reserves held in Saudi riyals and UAE dirhams, which are pegged to the US dollar. 

It is already available on multiple blockchains, including Ethereum, BNB Chain, Solana and Tron, with ADI Chain marking its latest integration. The stablecoin is positioned to provide access to Islamic finance markets, which represent more than $3 trillion in assets globally, according to the announcement from the ADI Foundation.