Gray scale goes ahead with its plans to turn its avalanche Trust a spot exchange traded fund (ETF)Filing an S-1 registration statement by the US Securities and Exchange Commission on Friday.
If approved, the fund would trade on Nasdaq, giving traditional investors easier access to the Avax tokenet through a regulated vehicle.
The move marks the second regulatory step in the conversion process after Grayscales original 19B-4 archiving in March. The fund allows creations and redemptions in cash, managed by authorized participants. Coinbase would provide the most important brokerage services, including the Avax Parent Authority and Trade Efficiency, while BNY Mellon would act as administrator and transfer agent.
Grayscale launched its Avalanche Trust in August 2024 as part of a broader expansion to altcoin-focused investment products. The fund is currently managing just under $ 15 million in assets with a net worth per day. Share of 12.20%. It’s down from a high of 27% in December, reflecting both the wider crypto market decline and Avax’s price glass.
Avalanche is a proof-of-stake layer 1 blockchain designed for custom, scalable networks called “Undernet.” These allow developers to create application-specific chains while maintaining compatibility with the wider avalanche ecosystem. In recent months, the institutional interest in Avalanche has grown. Visa integrated the network into its stableecoin settlement system and the launch of the Avalanche Visa card allows users to use Avax and StableCecoins as USDC directly.
Still, Avax has not escaped from market wind. Token is trading to $ 24.25, dropped 9% over the past year and 55% off its highest height of $ 54.11 in December.
Grayscale is not alone in its push for an Avax Etf. Vaneck and several other asset managers have also submitted similar applications and are betting that investors look beyond Bitcoin and Ethereum for ETF exposure.
If S-1 clears regulatory obstacles, Avax ETF would become one of the first US listed products to track a smart contract Blockchain outside Crypto Majors. It could signal a shift in how traditional funding assigns digital assets, with token-specific infrastructure games that become part of diversified crypto investment strategies.
