Grayscale Initiates Process to Turn Avalanche Trust Into Spot ETF

Grayscale Files to Convert Avalanche Trust Into Spot ETF

Grayscale has submitted an S-1 registration to the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot exchange-traded fund (ETF), advancing its efforts to bring AVAX exposure to traditional markets.

If approved, the ETF would trade on Nasdaq, allowing investors to gain access to Avalanche (AVAX) through a regulated, cash-settled product. Coinbase would provide custody and execution services, while BNY Mellon would serve as the fund’s administrator and transfer agent.

The filing follows Grayscale’s earlier 19b-4 submission in March, marking the next regulatory step in the ETF conversion process.

Launched in August 2024, the Grayscale Avalanche Trust currently manages just under $15 million. Its net asset value per share has dropped to 12.2% from a peak of 27% in December, amid broader market weakness and a decline in AVAX’s price.

Avalanche, a Layer 1 proof-of-stake blockchain, supports scalable, customizable “subnets” that enable developers to build specialized networks. Recent institutional adoption—such as Visa’s integration of Avalanche for stablecoin settlement and the launch of the Avalanche Visa Card—has fueled increased interest.

Despite these developments, AVAX remains under pressure, trading at $24.25—down 9% over the past year and more than 50% below its all-time high of $54.11.

Grayscale is not alone in targeting an AVAX ETF. VanEck and other asset managers have filed similar proposals, anticipating demand for crypto exposure beyond Bitcoin and Ethereum.

If approved, Grayscale’s product could be among the first U.S.-listed ETFs tracking a smart contract platform outside the top two digital assets—potentially signaling a broader shift in how institutional capital allocates to crypto.