Key Notes
- Nasdaq lodged a new Avalanche ETF filing with the US SEC.
- Avalanche ETF, backed by Grayscale, is the second in the market from major asset managers.
- AVAX price maintained its drawdown despite the bullish ETF filing news
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Grayscale Investments, LLC has taken a major step in bringing a spot Avalanche exchange-traded fund (ETF) to the market. The asset management giant has joined VanEck in filing for the AVAX ETF with the U.S. Securities and Exchange Commission (SEC).
Nasdaq Files for Avalanche ETF Approval
According to the filing on March 27, the firm applied through its exchange partner, Nasdaq. The firms submitted a 19b-4 filing to the SEC to list and trade the proposed Grayscale Avalanche Trust ETF shares.
It is worth mentioning that this filing is an essential step in the regulatory approval process. It will be published in the Federal Register and open to public comments and review if accepted.
The filing revealed that the proposed ETF is developed to track the value of AVAX, the native cryptocurrency of the Avalanche blockchain. It will allow investors to gain exposure to AVAX without holding the asset directly.
According to the update, the ETF will work just like Grayscale’s Bitcoin and Ethereum products. The firm plans to convert its existing private Avalanche Trust into a publicly traded fund.
Grayscale’s Avalanche Trust was launched in August 2024 and currently manages approximately $1.7 million in assets. If approved, the ETF will make AVAX more accessible to institutional and retail investors, offering a regulated investment option with lower technical barriers.
Growing Institutional Interest in AVAX
It is worth noting that the push for an Avalanche ETF shows broader institutional interest in alternative blockchain networks beyond Bitcoin and Ethereum.
VanEck recently submitted an S-1 registration proposal to the US SEC for its own AVAX ETF. It also shows a growing appetite for Avalanche-based investment products. Grayscale documented important service providers for the proposed fund in the submitted filing.
It noted that Coinbase Custody Trust Company will handle asset custody, while BNY Mellon will serve as the administrator and transfer agent.
Foreside Fund Services is expected to manage marketing efforts, and CoinDesk Indices will provide the benchmark index for tracking AVAX’s price. Avalanche is built for fast transactions and scalability. It runs on three separate blockchains.
The X-Chain transfers assets, the C-Chain supports Ethereum-based smart contracts, and the P-Chain manages validators and custom blockchains. The network has become popular among developers and investors looking for alternatives to Ethereum, which often struggles with congestion.
AVAX Price Drops Amid ETF Filing
Reports indicate that the AVAX price has experienced an unexpected correction since the news of the filling became public.
CoinMarketCap data shows that the coin is down more than 8% in the past 24 hours, trading at $20.09 as of press time. Although other top coins like XRP, Ethereum, and Solana are seeing significant losses, AVAX has lost over 10% in 30 days.
Meanwhile, the SEC’s position on digital asset ETFs has changed since President Donald Trump’s inauguration. Under the leadership of acting chairman Mark Uyeda, the commission has shown increased openness to digital asset funds, leading to a wave of new ETF applications.
If approved, the Grayscale Avalanche ETF could mark another milestone in the growing institutional adoption of crypto assets.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
