Grayscale Moves Forward with AVAX ETF Grayscale Investments has taken a major step toward launching a spot Avalanche exchange-traded fund (ETF). The asset management firm, alongside VanEck, has filed for an AVAX ETF with the U.S. Securities and Exchange Commission (SEC).
Nasdaq Submits Avalanche ETF Filing
According to a filing on March 27, Grayscale applied through its exchange partner, Nasdaq. The submission includes a 19b-4 filing, which is required for listing and trading the proposed Grayscale Avalanche Trust ETF shares. If accepted, the filing will be published in the Federal Register for public review and comments.
The proposed ETF aims to track AVAX, the native cryptocurrency of the Avalanche blockchain. It offers investors exposure to AVAX without requiring direct ownership of the asset. Similar to Grayscale’s Bitcoin and Ethereum ETFs, the firm plans to convert its existing private Avalanche Trust into a publicly traded fund.
Launched in August 2024, Grayscale’s Avalanche Trust currently manages approximately $1.7 million in assets. If approved, this ETF would provide a regulated investment option, making AVAX more accessible to both institutional and retail investors.
Institutional Interest in Avalanche Grows
The push for an Avalanche ETF signals growing institutional interest in alternative blockchain networks beyond Bitcoin and Ethereum. VanEck recently submitted its own S-1 registration proposal for an AVAX ETF, reflecting the increasing demand for Avalanche-based investment products.
Grayscale has outlined key service providers for its proposed ETF. Coinbase Custody Trust Company will oversee asset custody, while BNY Mellon will handle administration and transfer agent services. Additionally, Foreside Fund Services will manage marketing, and CoinDesk Indices will supply the benchmark index for tracking AVAX’s price.
Avalanche is known for its fast transactions and scalability. The network operates across three blockchains: the X-Chain for asset transfers, the C-Chain for Ethereum-compatible smart contracts, and the P-Chain for validators and custom blockchains. Its efficiency has made it a popular choice among developers and investors seeking Ethereum alternatives.
AVAX Price Dips Following ETF Filing
Despite the positive news, AVAX has seen a price drop since the ETF filing. According to CoinMarketCap, the cryptocurrency has fallen over 8% in the past 24 hours, trading at $20.09 as of press time. Over the past 30 days, AVAX has lost more than 10% of its value, mirroring declines in other major cryptocurrencies like XRP, Ethereum, and Solana.
Regulatory Shifts and the Future of Crypto ETFs
The SEC’s stance on digital asset ETFs has shifted since President Donald Trump’s inauguration. Under acting chairman Mark Uyeda, the agency has shown more openness to crypto funds, leading to a surge in ETF applications. If approved, the Grayscale Avalanche ETF would mark another milestone in institutional crypto adoption.
Final Thoughts
Grayscale’s move to file for an AVAX ETF highlights the increasing demand for regulated crypto investment options. While AVAX’s price has dipped, the long-term impact of an approved ETF could drive greater adoption and investor confidence. As regulatory approval processes unfold, investors will be watching closely for the SEC’s decision on this significant development in the crypto market.
