Grayscale Files AVAX Trust Conversion to Spot ETF for Nasdaq Listing on August 25, 2025

Grayscale Investments has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot Avalanche (AVAX) ETF, with the potential to be listed on Nasdaq on August 25, 2025 [1]. This move would allow investors direct exposure to AVAX through standard brokerage accounts, without the need for direct wallet custody, marking a shift in accessibility and tradability for AVAX holders [1].

The proposed ETF, known as the Grayscale AVAX Trust ETF, would hold physical AVAX tokens and operate under a structure that leverages institutional custody and fund administration [1]. Coinbase Custody is designated as the custodian for the fund’s AVAX holdings, while BNY Mellon is expected to serve as the administrator and transfer agent, as disclosed in the S-1 filing [1]. These institutional service providers aim to enhance operational trust and regulatory oversight [1].

Nasdaq had previously submitted its own filing with the SEC in March 2025 to list an AVAX-tracking product, and Grayscale’s August 2025 registration aligns with these regulatory steps, suggesting coordinated efforts to bring AVAX exposure to a broader market [1]. This filing is part of Grayscale’s broader strategy to expand its suite of spot crypto ETFs, following recent filings for XRP and Dogecoin-related products earlier in the year [1].

Unlike the existing Avalanche Trust, the proposed spot ETF would offer intraday trading and tighter spreads, alongside daily net asset value (NAV) calculations and clearer regulatory oversight [1]. The key differences between the trust and the ETF include trading access—where the trust operates via OTC shares, while the ETF would be listed on Nasdaq—and custody arrangements, with Coinbase Custody named explicitly for the ETF [1].

For investors, evaluating a spot AVAX ETF should involve reviewing custody arrangements and security audits, comparing expense ratios and tracking methodologies against direct AVAX holdings, and assessing liquidity and listing venue details, particularly with Nasdaq and potential market makers [1]. Institutional investors may benefit from the simplified access to AVAX via brokerage accounts, potentially broadening participation in the AVAX market [1].

The timeline for SEC approval remains uncertain, with review cycles typically ranging from several weeks to months, depending on the need for responses to SEC comments and confirmation of Nasdaq listing [1]. If approved, the listing will represent a significant regulatory and market access milestone for AVAX, aligning with Grayscale’s strategic push to bring more crypto assets into mainstream financial infrastructure [1].

Source: [1] Grayscale Seeks SEC Approval to Convert Avalanche (AVAX) Trust Into Spot ETF, Potentially Listed on Nasdaq August 25, 2025 (https://en.coinotag.com/grayscale-seeks-sec-approval-to-convert-avalanche-avax-trust-into-spot-etf-potentially-listed-on-nasdaq/)