Key Points:
- Nasdaq has submitted a 19b-4 filing to the U.S. SEC for the approval of Grayscale’s Avalanche ETF.
- This ETF will directly hold AVAX tokens.
- This filing follows another ETF proposal for Avalanche by VanEck.
Nasdaq has initiated a filing with the U.S. SEC to approve a spot Avalanche ETF managed by Grayscale. Currently, Grayscale oversees an Avalanche Trust which has a management fee of 2.5%. If passed, the ETF could act as a more affordable and versatile investment option for those seeking exposure to the AVAX token. However, the SEC has not yet approved any spot altcoin ETFs aside from those focusing on ether (ETH).
If this application is successful, Grayscale’s ETF would provide another avenue for traditional investors to engage with crypto assets through standard brokerage services. The custodian for this fund would be Coinbase Custody, as stated in the proposal. The ETF is designed to track the performance of the Avalanche network’s native token, which is presently trading at $20.5, reflecting a decline of 6.6% over the past 24 hours amidst a general market downturn where the CoinDesk 20 Index has decreased by more than 4%.
Other organizations are also investigating Avalanche opportunities. Recently, VanEck submitted an S-1 form for a similar ETF. Additionally, Grayscale filed for a Cardano ETF last month, marking their first standalone investment vehicle for ADA.
