Important takeouts:
- Grayscale submitted an S-1 to the SEC to convert avalanche trust into a spot Avax ETF.
- The ETF trades Coinbase Custody as Asset Custodian and BNY Mellon as administrators in Coinbase custody.
- If approved, this could mark one of the first US list ETFs to be exposed directly to smart contract blockchains beyond Bitcoin and Ethereum.
Grayscale Investments is moving forward with the ambitions of Crypto ETFs; S-1 registration statement with the US Securities and Exchange Commission (SEC) Start it Spot Avalanche (Avax) Exchange-Traded Fund. The purpose of this filing is to convert the company’s existing avalanche trust into NASDAQ’s public offering products, opening the door for facility and retail investors to access AVAX through traditional securities accounts.
Read more: Greyscale quietly sets $ada and $hbar etf stages with Delaware Trust Filing
Grayscale’s strategy: expand beyond Bitcoin and Ethereum
Grayscale is the world’s largest digital asset manager, gradually expanding its ETF offering. Bitcoin and Ethereum dominated the realm of crypto investment products for a large part, but the company is expanding to include Layer 1 blockchain, including avalanches, and assets such as XRP and Dogecoin.
The Avalanche New S-1 filing is the second regulatory milestone in the transition to grayscale after filing the 19B-4 earlier this year. If approved, the ETF will allow cash-based creation and redemption, as with other spot ETF structures.
According to the submission, Coinbase Custody protects Avax Tokensmeanwhile BNY Mellon acts as an administrator and transfer agent. This setup reflects the operational framework used for grayscale Bitcoin Trust conversion and demonstrates a consistent regulatory approach.
Why an avalanche? Institutional interest is growing
avalanche (avax) emerged as one of the fastest smart contract blockchains and highlighted it Scalability with “subnets”– Inges application-specific blockchains that can interoperate with the broader avalanche ecosystem.
Last year, the avalanche itself was built into the Visa Stablecoin Settlement Platform, and the Avalanche Visa card was released, allowing users to directly spend avaxes and Stablecoins such as USDC on their daily purchases.
The type of blockchain structure also attracted developers and startups seeking scalable infrastructure other than Ethereum. By focusing ETF products on avalanches, Grayscale leverages this ground swell of institutional and corporate interest.
avax price and performance
Despite its robust basics, Avax has withstanded the pressures of the entire crypto market. The coin’s price is currently around $24, down 9% year-on-year, down 55% from the December all-time high of $54.11.
Avalanche Trust was launched by Grayscale in August 2024 and currently has managed assets under $15 million with a net asset value per share (NAV) of $12.20. This price has receved since its peak in December, in line with the general negative performance of the crypto market this year.
Nevertheless, spot ETFs could potentially give the Avax market a new burst of liquidity and acceptance. Not only does it increase the ease of entry by US investors, it could also attract the attention of institutional management who want a diverse exposure to the Altcoin-based ecosystem.
Regulators will hurdle first
The path to approval is not easy. The SEC has always hesitated for Crypto ETFs and, after years of opposition, is only moving to approve Bitcoin’s SPOTETF in early 2024. The Ethereum ETF comes next, but the products backed by the rivals of the Layer-1 chain are still under pressure due to lack of liquidity, custody concerns and market manipulation.
Greyscale addressed these regulatory challenges and said final approval by the SEC and NASDAQ would be subject to approval. In March 2025, Nasdaq had already submitted a proposal to list the Avax ETFs in the SEC, indicating list-level preparation.
Read more: SEC pushes back Grayscale avalanches and Cardano ETF decisions
Competition bids in Avax ETF races
Grayscale is not the only player aiming to go into business. Other financial institutions, such as asset manager Vaneck, have submitted similar proposals to launch an avalanche-based ETF in the hopes that interest will no longer be confined to Bitcoin and Ethereum. With more Avax ETFs likely to be accepted, the first benefit of having multiple products that investors can choose is that fees are expensive, which can increase the overall adoption of avalanches in regulated markets.
