Grayscale Files for Avalanche ETF with Nasdaq

Grayscale has officially filed for an Avalanche ETF, aiming to offer a spot exchange-traded fund (ETF) for the AVAX token on Nasdaq. The filing, which was submitted using a 19b-4 form to the U.S. Securities and Exchange Commission (SEC), seeks approval to list and trade shares of this new fund, which would hold AVAX directly. If approved, this ETF would provide investors with a straightforward way to gain exposure to the Avalanche network through traditional brokerage accounts, without needing to interact directly with the cryptocurrency markets.

The move comes just a week after VanEck, another major player in the crypto investment space, filed an S-1 registration statement for a competing Avalanche ETF. This filing highlights growing institutional interest in regulated altcoin investment vehicles, although the SEC has yet to approve any spot crypto ETFs beyond Bitcoin (BTC) and Ethereum (ETH), making this a notable development in the crypto financial ecosystem.

The proposed Grayscale Avalanche ETF would convert the firm’s existing Avalanche Trust, which was launched in August 2024 as a private placement, into a spot ETF. Coinbase Custody is expected to serve as the custodian for the fund, and BNY Mellon would act as the administrator and transfer agent, bringing trusted institutional infrastructure to the product.

Avalanche (AVAX) is a Layer 1 blockchain renowned for its high throughput and scalability, with its native token AVAX playing a key role in transactions, staking, and governance on the network. Despite this strong technical foundation, AVAX has seen a decline of over 7% in the past 24 hours, reflecting broader market downturns, and is currently trading at around $20.20.

Grayscale’s filing for the Avalanche ETF follows its recent push for a Cardano ETF, signaling the company’s broader effort to bring more altcoins into the regulated ETF market. The SEC’s decision on these filings could establish a precedent for the next generation of crypto ETFs, extending beyond just Bitcoin and Ethereum, which have dominated the space so far.

The outcome of these filings is highly anticipated, as it could open the doors for more institutional-grade products for altcoins and further mainstream adoption of crypto in traditional investment portfolios.