Bitcoin News Today: Grayscale Files S-1 to Convert AVAX Trust into Spot ETF for Nasdaq Listing

Grayscale Investments has submitted a Form S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to convert its existing Avalanche (AVAX) Trust into a spot Avalanche Exchange-Traded Fund (ETF) [1]. If approved, the fund will trade on the Nasdaq under the name Grayscale AVAX Trust ETF and will offer investors direct exposure to AVAX tokens in a regulated format [2]. This move reflects Grayscale’s broader strategy to evolve its digital asset offerings and expand beyond Bitcoin and Ethereum into other major blockchains [3].

The proposed ETF will issue shares in blocks of 10,000 units, known as “Baskets,” which will be created and redeemed by authorized participants. Initially, the fund will accept only cash orders, with in-kind creation and redemption mechanisms pending future regulatory approval [4]. The fund will be administered by BNY Mellon, with Coinbase acting as custodian and prime broker, and CSC Delaware Trust Company serving as trustee [5].

Grayscale’s AVAX Trust may also participate in staking under certain conditions, potentially earning staking rewards. However, tokens may be temporarily inaccessible during staking periods, which could affect liquidity and yield for investors [6]. This structure is consistent with Grayscale’s existing Bitcoin Trust model, where physical custody of the underlying asset is maintained [7].

The filing comes at a time of significant momentum for the Avalanche network. SkyBridge Capital recently announced a $300 million asset tokenization initiative on the platform, and Toyota Blockchain Lab is preparing to launch a global mobility solution prototype using Avalanche’s multi-L1 architecture [8]. These developments highlight growing institutional interest in Avalanche and its potential for real-world application.

Grayscale’s proposal aligns with a broader industry push to integrate digital assets into traditional financial markets. The company has previously submitted similar filings for Bitcoin and Ethereum trusts, which are currently under SEC review [9]. Analysts suggest that the AVAX Trust conversion reflects a strategic move to meet demand from institutional investors seeking regulated access to alternative assets [10].

The filing was officially submitted on August 22, 2025, with Grayscale expressing its intent to launch the ETF on Nasdaq as early as August 25 [11]. While the SEC has not yet provided a timeline for approval, the submission has been verified through the SEC’s EDGAR database [12].

Source:

[1] Grayscale Files S-1 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)

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

[3] Grayscale Files AVAX Trust Conversion to Spot ETF for ... (https://www.ainvest.com/news/grayscale-files-avax-trust-conversion-spot-etf-nasdaq-listing-august-25-2025-2508/)

[4] S-1 (https://www.sec.gov/Archives/edgar/data/2035053/0000950170****1074/ck0002035053-20250823.htm)

[5] JUST IN: Grayscale Files for Spot Avalanche ETF as SEC ... (https://coinpedia.org/news/just-in-grayscale-files-for-spot-avalanche-etf-as-sec-review-begins/)

[6] Grayscale Files S-1 to Convert Avalanche Trust to Spot ETF (https://www.ainvest.com/news/xrp-news-today-grayscale-files-1-convert-avalanche-trust-spot-etf-2508/)

[7] Grayscale Files S-1 to Convert AVAX Trust into spot ... (https://crypto.news/grayscale-files-s-1-to-convert-avax-trust-into-spot-avalanche-etf/)

[8] First Squawk (https://x.com/FirstSquawk/status/1959932402593313237)

[9] Grayscale Files S-1 with SEC to convert Avalanche Trust ... (https://t.co/uNI3CCllnn)

[10] Grayscale Files S-1 to Convert AVAX Trust into spot Avalanche ETF (https://coinmarketcap.com/community/articles/68ac61c88fb5ac692583fa4c/)