Grayscale Investments, LLC has taken a significant step toward launching a spot Avalanche exchange-traded fund (ETF). The asset management giant has joined VanEck in filing for an AVAX ETF with the U.S. Securities and Exchange Commission (SEC), signaling growing institutional interest in alternative blockchain assets.
Nasdaq Submits Avalanche ETF Proposal
On March 27, Nasdaq submitted a 19b-4 filing to the SEC, proposing to list and trade shares of the Grayscale Avalanche Trust ETF. If accepted, the filing will be published in the Federal Register for public comments and regulatory review.
The proposed ETF is designed to track AVAX, the native cryptocurrency of the Avalanche blockchain, offering investors exposure without directly holding the asset. Similar to Grayscale’s Bitcoin and Ethereum funds, the firm aims to convert its existing private Avalanche Trust into a publicly traded ETF.
Grayscale launched its Avalanche Trust in August 2024, currently managing around $1.7 million in assets. If approved, the ETF could expand AVAX’s accessibility to both institutional and retail investors, providing a regulated investment vehicle with reduced technical complexities.
Institutional Demand for Avalanche Grows
The push for an Avalanche ETF underscores increasing institutional appetite for blockchain networks beyond Bitcoin and Ethereum. VanEck also recently submitted an S-1 registration for its AVAX ETF, reinforcing market interest in Avalanche-based investment products.
Grayscale’s filing details key service providers for the proposed fund. Coinbase Custody Trust Company will manage asset custody, while BNY Mellon will serve as the administrator and transfer agent. Foreside Fund Services is set to oversee marketing efforts, with CoinDesk Indices providing the benchmark index for tracking AVAX’s price.
Avalanche’s three-chain architecture—X-Chain for asset transfers, C-Chain for Ethereum-compatible smart contracts, and P-Chain for validator coordination—enhances its appeal among developers and investors seeking scalable alternatives to Ethereum.
AVAX Price Declines Following ETF Filing
Despite the bullish sentiment around the ETF, AVAX has experienced a market correction. CoinMarketCap data shows the token has dropped over 8% in the past 24 hours, trading at $20.09. Over the past month, AVAX has declined more than 10%, mirroring broader market downturns affecting XRP, Ethereum, and Solana.
Also Read: Avalanche (AVAX) Drops, But Whale Activity Signals Rebound
The SEC’s stance on digital asset ETFs has evolved under acting chairman Mark Uyeda. Since President Donald Trump’s inauguration, regulatory openness has increased, leading to a surge in ETF applications. If approved, the Grayscale Avalanche ETF could mark another milestone in the institutional adoption of crypto assets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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