AVAX

Avalanche (AVAX) is making major moves. The token surged 9% in a single day following a bombshell report from the Financial Times that the Avalanche Foundation is in advanced discussions to raise a massive $1 billion. The goal? To fund two new U.S.-based companies dedicated to buying up millions of AVAX tokens, a move that could dramatically reduce circulating supply and fuel a significant price rally.

The Plan: Two $500M Treasury Companies

The fundraising effort is structured around two separate entities, each with a clear mission to accumulate AVAX.

• Hivemind Capital: Spearheading the first initiative to raise $500 million through a Nasdaq-listed firm. The effort is being advised by prominent financier Anthony Scaramucci.
• Dragonfly Capital: Backing the second initiative, which also aims to raise $500 million via a Special Purpose Acquisition Company (SPAC), allowing for quicker capital deployment.

This strategy is being compared to a massive corporate buyback. By purchasing huge amounts of AVAX at a discount, these treasuries would effectively remove tokens from circulation, creating scarcity and potential upward price pressure.

AVAX Price Reaction and Technical Outlook

The market reacted instantly to the news. 24-hour trading volume skyrocketed 100% to $1.93 billion, indicating a huge surge of interest.

From a technical perspective, the breakout is powerful:

• Current Price: ~$28.70
• Key Resistance: Popular analyst EllioTrades notes there is no major resistance until $55.
• Bollinger Bands: Are expanding, suggesting the trend is strengthening. A sustained move above the upper band ($28.22) could trigger a run toward $35-$40.
• RSI: Is approaching 70 (overbought), signaling strong buying pressure but also warning that a short-term pullback is possible.

The key support level to watch is the 20-day Simple Moving Average (SMA) at $24.99. Holding above this level is crucial for the bullish thesis to remain intact.

The Bottom Line

This potential $1 billion fundraise is a monumental show of institutional confidence in the Avalanche ecosystem. By creating dedicated vehicles to hold AVAX, the foundation is not just promoting adoption—it’s engineering a fundamental supply shock.

If successful, this could be the catalyst that propels AVAX out of its long consolidation and toward its yearly high and beyond. For investors, this represents a powerful fundamental narrative backed by serious financial firepower.

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.

The Avalanche Foundation has secured $250 million through a private token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital. Following the announcement, AVAX prices surged nearly 9%, trading at $52.80. With Bitcoin stabilizing above $100,000, AVAX is positioning itself for another rally.

Major Network Upgrade on the Horizon

The funding announcement coincides with Avalanche’s upcoming Avalanche9000 upgrade, which launched on the testnet on November 25. Scheduled for a December 16 mainnet release, the upgrade promises to slash blockchain deployment costs by 99.9%, enable interchain communication, and unlock $40 million in developer rewards.

This development highlights Avalanche’s commitment to innovation and scalability, making it a strong contender in the decentralized finance (DeFi) ecosystem.

DeFi Growth and TVL Milestone

Avalanche’s Total Value Locked (TVL) has surpassed $1.65 billion—the highest in nearly two years. This surge in TVL underscores its rising popularity in the DeFi sector, drawing both users and capital.

Meanwhile, AVAX has recorded impressive gains. Over the last 30 days, the token’s price jumped by 50%, reaching $52.80. However, it has struggled to stay above $54, creating resistance at that level.

Technical Indicators Suggest Further Gains

The Relative Strength Index (RSI) for AVAX is currently at 62, indicating room for additional price growth before entering the overbought zone. Bollinger Bands show increased volatility, hinting at a potential breakout.

Despite this positive outlook, Santiment data reveals negative weighted sentiment for AVAX. While this could slow momentum, strong trading volumes over the last 24 hours suggest continued demand.

Investor Sentiment and Profit Potential

At press time, 80% of AVAX addresses are in profit, while only 16% remain at a loss. If demand persists and AVAX rallies higher, more holders could see profits or reach the break-even point.