 ETF. If approved, it will be listed on Nasdaq under the ticker AVAX, offering regulated AVAX exposure to investors.){kind=link}
Grayscale Investments has formally submitted its S-1 registration statement to the U.S. Securities and Exchange Commission (SEC), in an effort to obtain approval for a spot Avalanche ETF.
If approved, the Grayscale Avalanche Trust will change its name to the Grayscale Avalanche Trust ETF and be listed with the ticker symbol “AVAX” on the Nasdaq.
The trust is organized as a Delaware statutory trust, which will use standard units of beneficial interest that will represent ownership in the trust.
The ETF is distinct from a direct investment in Avalanche (AVAX) as it will be designed to track the value of the asset. At the same time, it allows investors to access exposure to AVAX in a regulated investment.
Structure, Purpose, and Oversight of the Trust
The Grayscale Avalanche Trust is intended to hold AVAX tokens with the intention of ensuring the share price closely tracks the value of the AVAX (minus expenses and any liabilities).
Grayscale Investments Sponsors, LLC and Grayscale Operating, LLC are co-sponsors of the trust.
The Bank of New York Mellon will act as transfer agent and administrator for the trust.
Coinbase, Inc. is acting as prime broker, and Coinbase Custody Trust Company will act as the custodian of the trust’s assets.
They have also made clear that the shares will not be registered as a security under the Investment Company Act of 1940 and that there will be no regulatory oversight of the trust as a commodity pool of the CFTC.
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Creation and Redemption of Shares
Incentives will be made available to Authorized Participants in increments of 10,000 Shares, called “Baskets”, by the ETF’s Authorized Participants.
Initially, the trust will only accept cash orders, which means that the Authorized Participants deposit or redeem cash, and then it is converted through a third-party liquidity provider to AVAX ATR.
While the SEC has approved in-kind creations and redemptions for certain crypto ETPs, the Grayscale Avalanche Trust does not yet have this ability.
Nasdaq may seek regulatory approval to allow in-kind transactions, but it is uncertain if and when that will happen.
The restriction may detract from the effectiveness of the ETF and lessen demand compared to other digital asset offerings.
Market Impact and Current AVAX Performance
Even with the announcement, Avalanche’s price has not reacted favorably in the near term.
Currently, AVAX is trading at $24.11, down 3.57% for the last 24 hours, and has a weekly gain of 1.32%.
With a circulating supply of 420 million AVAX, their total market cap is $10.17 billion.
Investors seem hesitant as they balance their excitement for the potential ETF listing they might earn with the broader market volatility and uncertainty about the final regulatory outlook.
Also Read: Polymarket Bets On XRP ETF Approval In 2025 With 82% Probability Amid Grayscale Filing For XRP ETF
Wider Crypto ETF Momentum
The Grayscale Avalanche filing comes on the heels of a rush of new crypto ETF filings in the US.
On January 16th, UnoCrypto reported that Canary Capital’s Litecoin ETF filing edged closer to approval, which caused the price of Litecoin to increase by 16%.
Notably, on July 29th, we reported that Cboe filed to list the Canary Capital Staked Injective ETF, which will give investors exposure to Injective (INJ), while allowing the investor to earn staking rewards.
The filing activity in relation to crypto ETFs signals a growing push for crypto to be included in funds in the US marketplace, buoyed by demand from investors and changes in the regulatory environment.
Grayscale’s filing for an Avalanche ETF represents part of this trend and a growing demand for efficient ways to invest in a diversified set of digital assets.
Also Read: IRS Tightens Crypto Compliance, 1099-DA Forms Required For 2025 Filings, Ahead Of Trump’s Oath Day