Regulators Hold Keys as Crypto Splits: ETF Hope, Price Plummets, and a New DAG Rises

Grayscale Investments has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot Avalanche (AVAX) exchange-traded fund (ETF). The proposed ETF will provide traditional investors with regulated access to AVAX through brokerage accounts, with Coinbase Custody serving as the custodian for AVAX assets and BNY Mellon acting as the administrator and transfer agent [1]. The move aligns with Grayscale’s broader strategy to expand its lineup of crypto investment products, following similar filings for XRP and Dogecoin earlier in the year [1]. If approved, the ETF will trade on Nasdaq, potentially increasing liquidity and institutional adoption of AVAX [3].

The initiative comes as Avalanche (AVAX) faces a challenging price trajectory. AVAX, the native token of the Avalanche blockchain, is down 35% year-to-date and has lost 55% of its value since peaking at $54.20 in December 2024, currently trading at around $24.30 [1]. Despite these declines, Avalanche has maintained a market capitalization of $10.2 billion, ranking it 22nd among cryptocurrencies [1]. Institutional interest in Avalanche has remained strong, with recent developments such as Visa’s integration into its stablecoin settlement system and the launch of the Avalanche Visa Card, which allows users to spend AVAX and stablecoins like USDC [3]. Analysts remain cautiously optimistic, with some suggesting a potential price rebound to the mid-$30 range if AVAX breaks through key resistance levels [2].

Meanwhile, BlockDAG (BDAG) is capturing significant attention with its record-breaking presale. Having raised over $386 million and sold more than 25.5 billion coins across 30 batches, BDAG is currently priced at $0.03 [4]. The project is building momentum with over 3 million users of its X1 mobile miner app, and the sale of nearly 20,000 ASIC miners indicates strong institutional and retail interest [4]. Additionally, BlockDAG has attracted more than 4,500 developers working on over 300 decentralized applications, supported by EVM compatibility and a hybrid DAG + Proof-of-Work architecture [5]. Analysts have speculated that if BlockDAG reaches $1 post-listing, it could rival top Layer-1 blockchains in market capitalization and adoption [5].

Tron (TRX), another major player in the crypto space, is experiencing bearish pressure as its price nears 0.345. Founder Justin Sun recently supported a 60% reduction in network fees as part of Tron Improvement Proposal 789, aiming to increase on-chain activity and attract more users [6]. While the move could enhance adoption, it has also raised concerns among token holders about short-term profitability and potential unstaking of TRX [6]. Technical indicators, including a bearish MACD crossover and RSI hovering near neutral, suggest that further downward movement is possible, with some analysts anticipating a potential decline toward 0.33 [7]. The increased trading volume and active short positions further reinforce a bearish outlook, with short-term traders adjusting positions in response to the fee cut announcement [6].

The crypto market is currently navigating three distinct narratives: Grayscale’s potential Avalanche ETF, Tron’s bearish price outlook, and BlockDAG’s explosive presale growth. While Avalanche awaits regulatory clarity, and Tron grapples with price volatility, BlockDAG is building a foundation for long-term adoption and scalability. With its DAG-based architecture and growing user base, BlockDAG is being positioned not just as a presale success but as a contender for the top 50 cryptocurrencies by market capitalization [5]. Analysts highlight that the real value lies in the project’s infrastructure and real-world use cases, making it a unique opportunity in the evolving blockchain landscape [5].

Source: [1] Grayscale Files S-1 For Spot Avalanche ETF With Ticker (https://cointelegraph.com/news/grayscale-files-spot-avalanche-etf-ticker-avax) [2] Grayscale Files for Avalanche ETF, Will AVAX Price Recover? (https://finance.yahoo.com/news/grayscale-files-avalanche-etf-avax-160203359.html) [3] Grayscale Moves 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) [4] BlockDAG (BDAG): The Presale Phenomenon (https://blockchainreporter.net/blockdag-at-0-03-the-silent-presale-that-could-outshine-the-top-crypto-performers-of-2025/) [5] BlockDAG's $386M Presale Fuels $10 Price Talk (https://coindoo.com/from-0-03-to-a-potential-10-how-blockdags-386m-presale-and-25-5b-coins-sold-are-fueling-long-term-hopes/) [6] TRX Price at Risk as Justin Sun Moves to Cut Tron Network (https://finance.yahoo.com/news/trx-price-risk-justin-sun-181730410.html) [7] Avalanche ETF Approval Nears, Tron (TRX) Price Outlook (https://crypto-economy.com/blockdag-targets-600m-presale-record-while-avalanche-etf-sparks-buzz-tron-trx-price-outlook-dips/)