Grayscale Investments is moving forward with its efforts to introduce a spot Avalanche exchange-traded fund (ETF) product to the market.
On March 27, Nasdaq applied to list and trade the Grayscale Avalanche Trust shares as an exchange-traded fund with the US Securities and Exchange Commission (SEC).
Despite the ETF filing, AVAX’s price is down more than 7% in the last 24 hours to $20 as of press time, according to CryptoSlate’s data.
Avalanche ETF
According to the filing, the fund’s goal is to mirror the market value of AVAX—the native token of the Avalanche blockchain—based on a benchmark index.
It continued that while the product would not allow investors to hold AVAX directly, the ETF offers a streamlined way to gain exposure to the asset. Nasdaq stated that the ETF aims to deliver this access with lower costs and fewer technical barriers compared to self-custody or using crypto exchanges.
The filing noted that CSC Delaware Trust Company will serve as the fund’s trustee, and Coinbase Custody Trust Company will handle custodial services.
Meanwhile, BNY Mellon is expected to take on administration and transfer agent duties, while Foreside Fund Services will manage marketing. CoinDesk Indices, Inc. will provide the benchmark index to track AVAX’s price.
It’s possible that the ETF could transform Grayscale’s existing Avalanche Trust into a publicly traded product. The trust manages around $1.7 million in assets and carries a 2.5% annual fee.
Meanwhile, Grayscale isn’t the only firm exploring AVAX ETFs. Earlier in the month, asset manager VanEck also filed paperwork with the SEC for a similar product, signaling a broader trend of institutional interest in Avalanche.
Emin Gün Sirer, founder and CEO of Ava Labs, welcomed the growing focus on AVAX ETFs. He said these products represent a fresh way for investors to interact with advanced blockchain infrastructure without needing deep technical know-how.
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