Institutional Bet on AVAX Gains Regulatory Momentum

Bitwise has initiated the regulatory process for a spot-based Avalanche (AVAX) exchange-traded fund (ETF) by filing an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). The move follows the firm's successful registration of the ETF as a statutory trust in Delaware, a crucial legal step toward formal market entry. This development reflects growing institutional interest in AVAX and signals the expanding integration of cryptocurrencies into traditional financial markets.

The Bitwise Avalanche ETF is designed to hold AVAX tokens directly, rather than relying on futures or derivatives, offering investors a more transparent and direct exposure to the token. The fund’s net asset value (NAV) will be calculated using the CME CF Avalanche–Dollar Reference Rate – New York Variant, a benchmark that aggregates trade data from major Avalanche trading platforms. This ensures the ETF's pricing reflects a broad and reliable market view.

The ETF will issue and redeem shares in blocks of 10,000 units, known as baskets, which can be settled either in cash or in AVAX tokens. These baskets are intended to streamline the process for institutional and retail investors seeking exposure to the token without the complexities of managing digital wallets or private keys. Coinbase Custody Trust Company, regulated under New York banking law, will act as the custodian for the AVAX holdings, ensuring secure and segregated storage in cold wallets.

The proposed structure of the fund mirrors that of other spot-based crypto ETFs, which do not operate as investment companies or commodity pools. This distinction allows the fund to bypass certain regulatory hurdles and offers investors a product more aligned with direct crypto ownership. The sponsor, Bitwise Investment Advisers, will charge a management fee based on the total AVAX holdings in the trust, while investors will also bear standard brokerage fees for trading the ETF shares.

At the time of filing, AVAX was trading at $29.83, representing a 1.29 percent gain over the past 24 hours. Despite this upward movement, the token remains 57.44 percent below its historical high, highlighting the continued volatility associated with cryptocurrency markets. The filing has coincided with renewed investor interest in AVAX, particularly as institutional adoption of crypto assets accelerates.

Bitwise is not alone in its pursuit of an AVAX ETF. In March 2025, VanEck also submitted an S-1 with the SEC for a spot-based AVAX ETF, while Nasdaq proposed a rule change to facilitate such listings. Meanwhile, Grayscale has filed to convert its existing Avalanche Trust into a spot AVAX ETF, with Coinbase Custody and BNY Mellon serving as custodian and administrator, respectively. These concurrent efforts underscore a broader trend of institutional confidence in AVAX as a viable investment vehicle.

Pending final SEC approval, the Bitwise Avalanche ETF is expected to be listed on a U.S. exchange under a yet-to-be-disclosed ticker symbol. If approved, the product could enhance AVAX’s visibility in traditional finance and provide a regulated, accessible avenue for both institutional and retail investors to gain exposure to the token.