Grayscale Files to Convert Avalanche Trust to Spot AVAX ETF with Nasdaq Listing

Grayscale has submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) to convert the Grayscale Avalanche Trust into a spot Avalanche (AVAX) ETF, seeking public listing on Nasdaq [1]. The trust, previously available only to accredited investors, would allow broader access to AVAX by tracking its market price and offering shares that trade on an exchange [1]. Coinbase has been designated as the custodian for the fund’s AVAX holdings, ensuring the tokens are securely stored [1].

The filing includes procedural support from Nasdaq, which submitted a 19b-4 form on Grayscale’s behalf earlier this year [1]. This move aligns with broader efforts by multiple asset managers to launch Avalanche-focused investment vehicles, including VanEck, which filed a separate ETF application in the U.S. and established a Delaware-based trust [1]. VanEck’s proposal was deferred in June due to the SEC’s request for additional review time [1].

The regulatory landscape for crypto ETFs has shown signs of easing. In July, the SEC announced a merit-neutral approach to evaluating crypto ETF applications, signaling a more open stance [1]. This development follows the successful launch of spot Bitcoin and Ethereum ETFs in 2023, and analysts are now predicting a wave of approvals later this year [1]. Bloomberg ETF analyst James Seyffart estimates a 90% chance of approval for Avalanche ETFs, as well as for ETFs focused on Dogecoin, Cardano, Polkadot, and HBAR [1].

Avalanche, currently the 22nd largest cryptocurrency by market capitalization, has a valuation of approximately $10 billion according to CoinGecko [1]. The AVAX token recently traded near $24, down 7.6% in the past 24 hours [1]. Decentralized finance (DeFi) activity on the Avalanche network remains robust, with nearly $2 billion in total value locked (TVL), according to DefiLlama [1].

The potential approval of a spot AVAX ETF could enhance liquidity and attract new institutional and retail capital into the market [1]. Grayscale’s filing highlights the growing demand for regulated investment vehicles in the crypto space and reflects the increasing institutional interest in digital assets [1].

Source: [1] Grayscale Files to Convert Avalanche Trust to ETF – Decrypt (https://decrypt.co/336759/grayscale-files-convert-avalanche-trust-etf)