Grayscale has set its sights on Avalanche. The digital asset manager has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot Avalanche (AVAX) ETF.
If cleared, the fund would trade under the AVAX ticker and give investors direct exposure to Avalanche through traditional brokerage accounts.
This is a move that could boost institutional access and credibility for the altcoin.
Grayscale’s Next Big ETF Push
The filing shows Coinbase Custody lined up as custodian, with BNY Mellon acting as administrator and transfer agent. Nasdaq, which already submitted a 19b-4 filing in March 2025 to list the ETF, remains a key player.
Grayscale confirmed in its statement: “In connection with the effectiveness of this registration statement and the listing of the Shares on the Nasdaq stock market, the sponsor intends to rename the Trust as Grayscale AVAX Trust ETF as described in this registration statement.”
Why It Matters for Avalanche
A spot AVAX ETF could open the floodgates for institutional investors who want regulated access to Avalanche without navigating crypto exchanges.
More importantly, it could bring higher liquidity, stronger price discovery, and broader adoption. For Avalanche, it’s a chance to step out of Bitcoin and Ethereum’s shadow and cement itself as a serious player in mainstream finance.
The SEC Hurdle
That said, the SEC’s stance on altcoin ETFs is still cautious. While Bitcoin and Ethereum ETFs have made progress, regulators continue to flag concerns around market manipulation and investor protection when it comes to smaller assets.
Approval of the 19b-4 filing is critical. Without it, the S-1 won’t move forward. The industry is watching closely; not just for Avalanche’s future, but for what the decision signals about the wider altcoin ETF market.
Grayscale’s Bigger Strategy
This move is part of a clear expansion plan. Grayscale has already filed for XRP and Dogecoin ETFs earlier this year, showing that the firm is no longer limiting itself to just Bitcoin and Ethereum products.
If the Avalanche ETF gets through, it could set the tone for the next wave of altcoin ETFs and mark another step in crypto’s push into traditional finance.
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FAQs
It would provide regulated, direct exposure to AVAX for institutional investors through traditional brokerage accounts, boosting credibility and adoption.
Coinbase Custody is the named custodian, BNY Mellon is the administrator, and Nasdaq has filed to list the ETF on its exchange.
The SEC must approve Nasdaq’s 19b-4 filing. The agency remains cautious about altcoin ETFs due to concerns over market manipulation.
Grayscale has also filed for XRP and DOGE ETFs. An AVAX approval could set a precedent and open the door for a wave of other altcoin ETFs.
