Nasdaq has officially filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of Grayscale’s proposed spot Avalanche (AVAX) exchange-traded fund (ETF). If approved, this ETF would hold AVAX directly, providing investors exposure to Avalanche’s native token through traditional brokerage accounts.
Grayscale’s move comes just one week after VanEck submitted an S-1 registration statement for its own Avalanche ETF, highlighting a growing institutional appetite for regulated altcoin investment vehicles. However, despite the increasing number of applications, the SEC has yet to approve any spot crypto ETFs beyond Bitcoin (BTC) and Ethereum (ETH).
The proposed Grayscale Avalanche ETF is structured as a conversion of the firm’s existing Avalanche Trust, which was originally launched as a private placement in August 2024. If approved, the ETF would allow broader market access to Avalanche exposure within a regulated framework.
Custody and Administration Partners
According to the Nasdaq filing, the fund will be custodied by Coinbase Custody, ensuring secure storage of AVAX holdings. BNY Mellon is expected to act as both the administrator and transfer agent, reinforcing the institutional credibility of the fund.
Avalanche’s Role in the Crypto Market
Avalanche is a Layer 1 blockchain known for high transaction throughput and scalability. Its native token, AVAX, plays a crucial role in transaction processing, staking, and governance on the network.
However, the market response to the ETF filing has been negative in the short term. AVAX has declined by over 7% in the past 24 hours, trading around $20.20, as part of a broader downturn in the crypto market.
Grayscale’s Expanding ETF Ambitions
Beyond Avalanche, Grayscale has also been pushing for a Cardano ETF, signaling its broader ambition to bring more altcoins into the regulated ETF market. With Bitcoin and Ethereum spot ETFs already in play, the SEC’s decision on Avalanche and other altcoin ETFs could set a major precedent for the next wave of crypto investment products.
Will the SEC Approve More Altcoin ETFs?
While the SEC’s stance on crypto ETFs beyond Bitcoin and Ethereum remains uncertain, increasing institutional demand and growing regulatory clarity could influence future approvals. If successful, these altcoin ETFs could significantly expand investor access to crypto markets while legitimizing the industry within traditional finance.
For more updates on crypto ETFs and institutional investments, visit TheCoinInfo.
