Grayscale Seeks to Convert Avalanche Trust Into Spot ETF
Grayscale has taken the next step in its bid to convert the Grayscale Avalanche Trust into a spot exchange-traded fund (ETF), filing an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on Friday.
If approved, the ETF would list on Nasdaq, offering investors direct exposure to AVAX through a regulated, cash-based investment vehicle. The product would allow cash creations and redemptions, with Coinbase handling custody and trade execution and BNY Mellon serving as administrator and transfer agent.
This S-1 filing follows Grayscale’s 19b-4 submission in March and marks continued progress toward launching one of the first AVAX-backed ETFs in the U.S.
Originally launched in August 2024, the Avalanche Trust currently manages close to $15 million in assets. Its net asset value per share has declined to 12.2% from a December peak of 27%, mirroring the broader crypto downturn and AVAX’s weakened performance.
Avalanche is a proof-of-stake Layer 1 blockchain designed for high scalability via custom “subnets,” which allow developers to build application-specific chains within its ecosystem. Institutional interest has grown recently, with Visa integrating Avalanche into its stablecoin settlement program and supporting AVAX payments via the Avalanche Visa Card.
Despite that momentum, AVAX is down 9% over the past 12 months and trades more than 50% below its all-time high of $54.11.
Grayscale is not alone in its pursuit. Other firms, including VanEck, have filed similar proposals as investor appetite grows for crypto ETFs beyond Bitcoin and Ethereum.
If cleared by regulators, the AVAX ETF would mark a key milestone—potentially becoming the first U.S.-listed spot ETF focused on a next-generation smart contract platform, expanding the scope of digital asset exposure in traditional finance.
