Grayscale Seeks Nasdaq Listing for Avalanche Spot ETF

Grayscale, a leading digital asset manager, has submitted a filing to the Securities and Exchange Commission (SEC) seeking approval to list shares of the Grayscale Avalanche Trust (AVAX) on the Nasdaq. This initiative aims to convert the trust into a spot exchange-traded fund (ETF), thereby offering investors a more convenient and flexible method to gain exposure to AVAX, the native token of the Avalanche ecosystem.

The filing, submitted on March 28, is part of a broader strategy by Grayscale to expand its range of regulated investment products tied to various altcoins. The company has previously filed for ETFs linked to other digital assets such as XRP, Solana, Litecoin, and Cardano. The proposed Avalanche spot ETF will hold AVAX directly and track its market price, with Coinbase Custody serving as the custodian. This move follows the successful launch of Grayscale's Bitcoin and Ethereum spot ETFs earlier this year.

The push for an Avalanche spot ETF by Grayscale is part of a wider industry effort to introduce more altcoin-related investment products to traditional markets. Other asset managers and investment providers have also submitted applications for various altcoin ETFs. While the SEC has yet to approve additional spot ETFs beyond Bitcoin and Ethereum, there is an expectation that more approvals are forthcoming. Analysts have predicted that Litecoin, XRP, SOL, and ADA could be among the next altcoins to receive regulatory approval for spot ETFs.

The proposed ETF will provide investors with a more affordable and flexible way to gain exposure to AVAX, which has experienced significant price volatility in recent weeks. Despite a 6.6% decline in the past 24 hours, AVAX remains more than 10% up in the past week, reflecting broader trends in the cryptocurrency market. The filing of form 19b-4 by Nasdaq sets the timeline for SEC approval or rejection into motion, with the regulator now having time to consider the application. If approved, the Avalanche spot ETF will offer investors a regulated and accessible way to invest in the growing Avalanche ecosystem.