AVAX tops $12 after Grayscale updates Avalanche ETF filing
AVAX rose above $12 after adding roughly 2% as Grayscale filed an updated S-1 form to convert the Avalanche Trust into an ETF, changing sponsor details to Grayscale Investments Sponsors LLC. The filing did not disclose management or staking fees. Futures open interest for AVAX increased about 1.66% in 24 hours to $499.87 million, signaling fresh position-building by traders, while a slightly negative funding rate (-0.0113%) indicates marginal willingness to pay for shorts. On the 4-hour chart technical indicators show improved bullish bias: RSI ~52 and a bullish MACD crossover. Immediate resistance sits near $12.78, with a target of $13.50 if daily closes above resistance; a failure could see a retest of $11.18 support. Key keywords: AVAX, Avalanche ETF, Grayscale, open interest, funding rate, RSI, MACD.
Bullish
The news is bullish for AVAX. An updated S-1 ETF filing by Grayscale increases the probability of institutional access and listing on major exchanges, which historically supports demand and price discovery for underlying assets. The immediate market reaction—price +2% and a 1.66% rise in futures open interest to $499.87M—shows fresh capital and position-building. Technical indicators (RSI ~52 and bullish MACD crossover) reinforce short-term bullish momentum. The slightly negative funding rate suggests some short interest, but the OI rise implies both longs and shorts are entering, often preceding larger directional moves. Comparable past events: token price gains followed Grayscale or major asset-manager ETF moves (e.g., spot-BTC ETF filings), typically producing short- to medium-term inflows and volatility. Short-term implication: higher probability of continued upside toward the $12.78–$13.50 area if buyers sustain momentum; expect elevated volatility and increased leverage usage. Long-term implication: if an ETF is listed, institutional adoption could support higher baseline demand and liquidity for AVAX, improving market depth and potentially elevating price floors, though outcomes depend on fee terms, listing venue, and macro conditions.