Grayscale Files to Convert Avalanche Trust to Spot ETF on Nasdaq

Grayscale has initiated the process of converting its Avalanche Trust into a spot exchange-traded fund (ETF), marking a significant regulatory and market development for digital asset investing. The company has submitted an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to restructure the trust, which currently holds Avalanche’s native token, AVAX, into a publicly traded ETF. The proposed ETF is expected to trade on Nasdaq under the ticker symbol AVAX [1][2][3]. This move aligns with the broader trend of institutional interest in crypto assets and the increasing demand for regulated investment vehicles in the space.

The structure of the new ETF would allow investors to gain direct exposure to AVAX through a traditional securities framework, offering a more accessible and familiar investment option compared to direct cryptocurrency trading. Grayscale’s Avalanche Trust has already built a significant position in AVAX, and converting it into an ETF aims to enhance liquidity and broaden its appeal to a wider range of institutional and retail investors [4][5]. The company has also partnered with Coinbase Custody to hold the AVAX assets and BNY Mellon for administrative support, highlighting the collaboration between traditional finance and the crypto ecosystem [6][7].

The filing reflects Grayscale’s ongoing strategy to transition its popular trust products into ETFs, following a regulatory and market environment that has become more receptive to crypto-backed investment vehicles. The proposed AVAX ETF is one of several such initiatives, and its approval by the SEC could set a precedent for similar conversions and new product launches in the sector [8][9]. While the price of AVAX remains subject to market volatility, the proposed ETF could serve as a catalyst for increased institutional participation and price discovery [10].

The regulatory process is expected to involve scrutiny over compliance with existing securities laws, including whether the AVAX token qualifies as an investment contract under current SEC guidance. Grayscale’s prior experiences with its Bitcoin Trust and its recent efforts with other crypto ETF proposals suggest a well-prepared and methodical approach to navigating regulatory challenges [11][12].

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Source: [1] Grayscale Files to Convert Avalanche Trust to ETF (https://finance.yahoo.com/news/grayscale-files-convert-avalanche-trust-202400601.html)

[2] Grayscale Files S-1 For Spot Avalanche ETF With Ticker (https://cointelegraph.com/news/grayscale-files-spot-avalanche-etf-ticker-avax)

[3] Grayscale Files with SEC to Launch AVAX Trust ETF on ... (https://www.mexc.com/news/grayscale-files-with-sec-to-launch-avax-trust-etf-on-nasdaq/73366)

[4] Grayscale Files AVAX Trust Conversion to Spot ETF on ... (https://www.ainvest.com/news/grayscale-files-avax-trust-conversion-spot-etf-nasdaq-2508/)

[5] Grayscale Files S-1 With SEC to Launch Spot Avalanche ... (https://www.cryptoninjas.net/news/grayscale-files-s-1-with-sec-to-launch-spot-avalanche-avax-etf-on-nasdaq/)

[6] Grayscale Pushes for Spot Avalanche ETF as AVAX ... (https://cryptorank.io/news/feed/04a13-grayscale-pushes-for-spot-avalanche-etf-as-avax-struggles-with-price-weakness)

[7] Grayscale Files Spot AVAX ETF With SEC for Nasdaq ... (https://www.xt.com/en/blog/post/grayscale-files-spot-avax-etf-with-sec-for-nasdaq-listing)

[8] Grayscale Moves to Convert Avalanche Trust Into Spot ETF (https://www.coindesk.com/markets/2025/08/25/grayscale-files-s-1-with-sec-to-convert-avalanche-trust-into-spot-etf-on-nasdaq)

[9] Grayscale Files for Avalanche ETF, Will AVAX Price ... (https://www.coinspeaker.com/grayscale-files-for-avalanche-etf/)

[10] Grayscale Files for Spot Avalanche ETF, Eyes Nasdaq Listing (https://coincentral.com/grayscale-files-for-spot-avalanche-etf-eyes-nasdaq-listing/)