Grayscale Aims to Bring Avalanche to Wall Street With New ETF Proposal
Grayscale is once again pushing crypto further into traditional finance. The asset manager has teamed up with Nasdaq to file for a spot Avalanche (AVAX) exchange-traded fund (ETF), potentially making it easier for everyday investors to gain exposure to the high-speed blockchain network without touching a crypto wallet.
If approved by the U.S. Securities and Exchange Commission (SEC), the fund would hold actual AVAX tokens, with Coinbase Custody providing secure storage. That means investors could trade Avalanche through regular brokerage accounts — no exchanges, no self-custody, no technical hurdles.
Grayscale already runs an AVAX Trust, which charges a 2.5% management fee. The new ETF would likely be more cost-efficient and liquid, continuing the firm’s ongoing transition from closed-end trusts to publicly traded ETFs. It also signals Grayscale’s confidence that altcoins like Avalanche are ready for the next level of mainstream exposure.
The timing comes as the broader market is under pressure. AVAX was down 6.6% on the day of the filing, trading at around $20.50, as the CoinDesk 20 Index slipped over 4%.
This move follows similar ETF ambitions from other firms, including VanEck, which filed for its own Avalanche ETF in early March. Grayscale, meanwhile, recently applied for a Cardano (ADA) ETF — further evidence that the race to legitimize altcoin investing is heating up.
Whether the SEC will approve remains to be seen. But if it does, this could open a new chapter in altcoin adoption — one that unfolds on Wall Street.
