Grayscale Files for Spot Avalanche ETF, Eyes Nasdaq Listing

TLDR

• Grayscale files to turn Avalanche Trust into AVAX ETF listed on Nasdaq.
• AVAX investors get Wall Street access with Grayscale’s Nasdaq ETF filing.
• Grayscale pushes for Avalanche ETF, bringing AVAX to traditional markets.
• Nasdaq may soon list Grayscale Avalanche ETF, offering direct AVAX exposure.
• AVAX joins Bitcoin & Ethereum as Grayscale moves Avalanche Trust to ETF.

Grayscale has formally submitted an S-1 filing to the SEC to convert its Avalanche Trust into the Grayscale Avalanche ETF. The firm plans to list the ETF on Nasdaq, providing direct AVAX exposure through traditional brokerage platforms. This development extends Grayscale’s product line beyond Bitcoin, Ethereum, XRP, and Dogecoin.

AVAX ETF Conversion Targets Traditional Market Access

Grayscale Avalanche ETF will hold physical AVAX and aim to reflect its market price with fewer operational expenses. It will issue and redeem shares in blocks of 10,000, known as Baskets, through authorized participants. Coinbase Custody will safeguard assets, while BNY Mellon will act as administrator and transfer agent.

According to the filing, the fund tracks AVAX using the CoinDesk AVAX CCIXber Reference Rate to calculate daily NAV. This rate is distinct from GAAP-compliant valuations, but Grayscale uses it for transparency. The trust will initially use a cash-based creation and redemption process, pending regulatory approval for in-kind options.

Grayscale Avalanche ETF allows buyers to gain price exposure to AVAX without handling digital wallets or private keys. Its structure enables arbitrage to keep share prices aligned with AVAX’s market value. Nasdaq initially filed for listing approval in March 2025, preceding this latest SEC registration.

Grayscale Expands Crypto Offerings

Grayscale launched the Avalanche Trust in August 2024 and now aims to evolve it into the Grayscale Avalanche ETF. The trust’s sole objective is to mirror the price of AVAX passively without using leverage or derivatives. As of June 2025, AVAX held the 18th spot in digital asset market capitalization, worth $7.6 billion.

The Grayscale Avalanche ETF follows similar strategies used in prior filings for XRP and DOGE trusts. These actions reflect the company’s broader plan to offer spot-based access to various crypto tokens. The trust structure provides a cost-effective route to crypto without direct blockchain interaction.

By using Coinbase Custody and BNY Mellon, Grayscale ensures security and regulatory oversight. After a recent reorganization, Digital Currency Group affiliates currently sponsor the trust. The trust’s assets are held separately and are not used as collateral in any financial arrangement.

Future Plans Include AVAX Staking Features

If approved, Grayscale Avalanche ETF may implement staking to earn rewards in AVAX under a provider-facilitated model. This will require regulatory clearance and satisfaction of internal trust conditions, which are still pending. Upon activation, the trust expects to stake up to 85% of its AVAX holdings.

AVAX staking would occur directly from the trust’s wallets without transferring assets to third parties. The staking provider will operate validators but cannot access the trust’s private keys. Staking rewards may be reinvested, distributed, or used to cover fees at the sponsor’s discretion.

Security protocols will remain intact during staking, ensuring the same custody conditions. The process will follow an amended custodial agreement without changing existing protections. Grayscale aims to maintain transparency and control while expanding the capabilities of the Grayscale Avalanche ETF.

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