Overview

Grayscale has submitted an S-1 form to the SEC, seeking to transition its Avalanche Trust into a spot Exchange-Traded Fund (ETF) to be traded on Nasdaq. The newly proposed ETF will permit cash-based creations and redemptions, with services provided by Coinbase for brokerage and custody, while BNY Mellon will oversee administrative duties.

• AVAX Performance: The value of AVAX, the native token of the Avalanche blockchain, has seen a drop of 9% over the last year and is currently 55% below its all-time high recorded in December.

Recent Developments

Should the regulatory bodies approve this filing, it would create a significant opportunity for traditional investors to access the AVAX token through a regulated method. The filing represents Grayscale’s second significant step towards converting its trust, following an initial filing made in March.

Key Insights

Grayscale launched the Avalanche Trust back in August 2024, as part of a strategic initiative to include more altcoin-focused investment products. Presently, the fund manages assets nearing $15 million, with a share price declining to 12.20% from a peak of 27% in December, mirroring both the broader cryptocurrency market’s decline and the decreased value of AVAX.

Avalanche, a proof-of-stake layer one blockchain, supports customizable and scalable networks known as “subnets.” In recent months, institutional interest toward Avalanche has grown, highlighted by Visa integrating this network into its stablecoin settlement framework.