Grayscale Files to Transform Avalanche Trust Into Spot ETF
Grayscale has taken the next step in its plan to convert its Avalanche Trust into a spot exchange-traded fund (ETF), filing an S-1 registration with the U.S. Securities and Exchange Commission (SEC) on Friday.
If approved, the ETF would list on Nasdaq and give mainstream investors simplified, regulated access to Avalanche’s AVAX token through a cash-settled vehicle. Coinbase is set to provide custody and trade execution services, while BNY Mellon will handle fund administration and act as the transfer agent.
This marks the second regulatory move in the process, following Grayscale’s 19b-4 submission in March. The ETF would offer creations and redemptions in cash, managed by authorized participants.
Originally launched in August 2024, the Avalanche Trust currently manages just under $15 million. Its net asset value per share has dropped to 12.20%, down from a peak of 27% in December, reflecting AVAX’s price decline and wider market pressures.
Avalanche is a proof-of-stake Layer 1 blockchain that supports custom, scalable subnets for application-specific networks. The network has seen growing institutional traction, with Visa using Avalanche for stablecoin settlement and recently debuting the Avalanche Visa Card, enabling direct AVAX and USDC spending.
Despite this momentum, AVAX remains 55% below its December high of $54.11, currently trading around $24.25.
Grayscale joins a growing list of asset managers—including VanEck—seeking approval for AVAX ETFs, signaling expanding investor appetite for exposure beyond just Bitcoin and Ethereum.
Should the SEC greenlight the filing, Grayscale’s AVAX product could become one of the first U.S.-listed ETFs to track a Layer 1 smart contract blockchain outside the crypto blue chips—potentially redefining how institutional capital engages with the broader digital asset ecosystem.
